News

Bankruptcy Petitions - tread warily

Be wary about taking over the conduct of a bankruptcy petition if as a creditor you have not served a statutory demand.

Paul Thomas, Partner, reports that this is the recent warning provided by the High Court in a recent successful appeal by a client of Quinn Barrow.

If a creditor supports a bankruptcy petition and then takes over conduct of that petition once the original creditor withdraws - even where that substitution of petitioner is sanctioned by the Court - the alleged bankrupt can set aside the petition because a statutory demand has not been served by the substituted petitoner.