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Pre-Winding Up Letter
PRE-WINDING UP LETTER
The first stage of our insolvency law process involves sending a pre-winding up letter to the organisation that owes you money. This type of document can only be sent to a corporate debtor. For debtors who are individuals, please use a statutory demand. The amount of debt you are seeking to recover must be at least £750.00 and the debt must be undisputed.
WHAT IS A PRE-WINDING UP LETTER?
A pre-winding up letter is a written demand for payment of a debt within a certain period of time. We demand payment within 3 days. The letter makes an explicit threat of a winding up petition being issued if payment is not made within the deadline stipulated.
HOW IS A PRE-WINDING UP LETTER DIFFERENT TO A STATUTORY DEMAND?
A pre-winding up letter is different to a statutory demand in that it is the appropriate written demand for payment where you are owed money by an organisation and wish to wind that entity up.
WHAT INFORMATION SHOULD BE INCLUDED IN A PRE-WINDING UP LETTER?
A pre-winding up letter does not have to be in a prescribed form. However, an effective pre-winding up letter will state:
- The correct name and address of the person or organisation that owes you money.
- Whether they carry on business as a partnership, limited liability partnership or a limited company.
- The value of the debt outstanding.
- The amount of statutory late payment compensation you wish to claim pursuant to the Late Payment of Commercial Debts Regulations 2002, as amended by the Late Payment of Commercial Debts Regulations 2013.
- The total amount outstanding.
- That the total amount outstanding is overdue.
- That a winding up petition will follow if payment is not made within 3 days.
HOW DO YOU SEND A PRE-WINDING UP LETTER?
Our pre-winding letter will be sent to the organisation that owes you money by Royal Mail first class post, by fax and by e-mail.
DO I NEED A SOLICITOR TO SEND A PRE-WINDING UP LETTER?
Strictly speaking, you do not need a solicitor to send a pre-winding up letter. However, using a solicitor may increase the likelihood of you getting paid. It may also help to avoid mistakes being made. Insolvency law is very complicated.
HOW MUCH DOES IT COST TO SEND A PRE-WINDING UP LETTER?
For a fixed fee of £150.00 plus VAT, we will send a pre-winding up letter to the organisation that owes you money. The cost of sending a pre-winding up letter is not usually recoverable from the organisation that owes you money.
HOW DO I INSTRUCT YOU TO SEND A PRE-WINDING UP LETTER?
You can instruct us to send a pre-winding up letter by completing our Pre-Winding Up Letter Form and returning it to: [email protected]
HOW QUICKLY WILL YOU PROCESS MY REQUEST?
Provided that your instructions are received by 4.00pm, we will process your request same day. If your instructions are received after 4.00pm, at a weekend or on a bank holiday, we will process your request the next working day.
WHAT WILL HAPPEN AFTER I INSTRUCT YOU TO SEND A PRE-WINDING UP LETTER?
We will send you a copy of our pre-winding up letter and our invoice for £150.00 plus VAT. Thereafter, if the individual or organisation that owes you money contacts us following receipt of our pre-winding up letter, we will contact you immediately to let you know if:
- They admit the debt and have sent us payment.
- They admit the debt but have not sent us payment.
- They admit part of the debt and have sent us payment.
- They admit part of the debt but have not sent us payment.
- They admit the statutory late payment compensation and have sent us payment.
- They admit the statutory late payment compensation and have not sent us payment.
- They have requested copy documents.
- They deny the debt.
- They deny the statutory late payment compensation.
If the individual or organisation that owes you money fails to respond to our pre-winding up letter, you will be entitled to proceed to Stage 2 of the insolvency law process by instructing us to issue a winding up petition.
Please note: to access our services, you will need to open an account. You can do this by completing the form on the open an account page of our website. On receipt of your application, we will set you up as a debt recovery client and then contact you to explain what will happen next. Alternatively, for general enquires, please contact us. If you would like to speak to one of our advisors, please call: 0151 650 6908. We very much look forward to working with you.