If you, or your company, owe a certain amount of Council Tax or business rates, and you have been summonsed, we may start bankruptcy or liquidation proceedings against you.

First, we will send you a statutory demand which will give you 21 days to pay us the full amount.

If you, or your company, receive a statutory demand, you should contact us immediately.

If you do not settle the statutory demand, we will present a petition for bankruptcy or liquidation in the high court.

If we issue a bankruptcy order against you, this will mean:

• The official receiver will investigate your affairs
• Your bank accounts will be frozen
• You will lose your credit rating and be blacklisted from getting any more credit, and
• You could be forced to sell your home to pay your debts.

If you are made bankrupt, the official receiver will control your spending.

If a liquidation order is granted against your company, this will mean:

• You may not be allowed to be a company director
• Your company will be wound up by the official receiver
• Your personal bank accounts could be frozen, and
• You could be forced to sell your home

Do not ignore the statutory demand.