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Bankruptcy

This is an expensive option which can take a long time. The fact that the creditor has taken the trouble of bringing the Bankruptcy proceedings does not confer on him any priority, i.e. any assets available after payment of preferential creditors and secured creditors will be divided amongst all the unsecured creditors in proportion to their debts. The Creditor has to guarantee the costs of the Bankruptcy Office, in case the Debtor's estate is insolvent.

It may be worth while initiating the process by the issue of a Bankruptcy Summons which is relatively inexpensive. The Creditor then has the option of deciding whether to go further with the action or not.