Creditors Are Chasing Me
Creditors Are Chasing Me: How to Stop the Pressure and Regain Control
When the phone does not stop ringing and the letters become increasingly threatening, it is easy to feel as though the situation is spiralling out of your control. It is not – or at least, it does not have to be.
Creditors have a legal right to pursue unpaid debts. They do not have the right to harass you, and there are formal legal mechanisms that can halt enforcement action entirely. More importantly, even at the point where creditor pressure feels unmanageable, there are structured options available that can resolve the situation – whether that means rescuing the business, restructuring the debt, or closing the company properly before a creditor forces the issue.
The worst thing you can do is nothing. The second worst is to make reactive decisions – taking out high-interest loans, making pressure payments to individual creditors – that worsen the position without solving the underlying problem.
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Your Rights When Creditors Are Chasing You
Creditors must operate within legal boundaries. Understanding those boundaries can help you regain some immediate control while a longer-term solution is found.
You are entitled to request that all creditor contact be made in writing only. This is a legal right – you can inform creditors in writing that you do not consent to phone contact and require all future correspondence to be sent to the company’s registered office. It stops intrusive calls and creates a clear paper trail of all communication.
Creditors may not contact your family, neighbours, or employees about the company’s debts. They may not call at unreasonable hours. They may not use threatening or abusive language. These are not just courtesies – they are legal requirements, and breaching them can be reported to the Financial Conduct Authority.
Before making any payment under pressure, verify that the debt is valid and properly documented. In England and Wales, most debts cannot be legally enforced if they have not been acknowledged for six years – if a debt is being chased that the company has had no contact with for a significant period, it is worth establishing whether it may be statute-barred before making any payment.
When Creditors Escalate: Statutory Demands and Court Claims
If a creditor moves beyond letters and calls to formal legal action, the timelines become significantly tighter.
A statutory demand requires a response within 21 days. You can pay the debt in full, negotiate a settlement, or – if the debt is disputed – apply to have it set aside within 18 days. Ignoring a statutory demand is one of the most dangerous things a director can do, because it is frequently used as a precursor to a winding-up petition. Once 21 days have elapsed without response, the creditor has established the grounds for that petition.
A court claim requires a response within 14 days. Failing to respond results in a default judgment being entered against the company, which damages its credit rating and accelerates the creditor’s ability to enforce.
At either of these stages, the introduction of a licensed insolvency practitioner can make a material difference. A professional letter confirming that the company is under formal review frequently causes creditors – including HMRC – to pause enforcement action. It signals that the situation is being addressed responsibly, which is often enough to create the breathing space needed to reach a structured resolution.
Receiving a winding-up petition is more urgent still. If a petition has already been served, please [read our specific guidance here] – the window for voluntary action may be days, not weeks.
Book a free, confidential call with Mike – today
Expert Advice, Delivered Personally
The Insolvency Practitioners is an independent national firm led by Michael Chamberlain. With over 30 years of experience, Mike has stood between hundreds of directors and their creditors – providing a calm, professional presence that allows for clear thinking and rational decision-making when the pressure is at its highest.
Every director who contacts us speaks to Mike directly – not a junior, not a call handler. That is not something every firm can say.
“When creditors are chasing you, it is easy to make reactive decisions – like taking out high-interest loans – that actually make the situation worse. Our role is to step in, slow the process down, and help you determine which debts are priorities and which options will actually resolve the situation.”
A Recent Example
A director of a 14-person design agency came to us in 2024 with four creditors actively chasing, including HMRC for £62,000 in VAT arrears and a landlord who had instructed debt collectors. He had been making ad-hoc payments to whichever creditor had called most recently, which had depleted the company’s available cash without resolving any of the underlying balances.
We wrote to all active creditors confirming that the company’s position was under formal professional review and requesting that all contact be directed to us. Three of the four creditors paused enforcement immediately. We then assessed the company’s position properly and established that the business was viable – the debt had accumulated during a difficult period, but the trading position had since stabilised.
A CVA was proposed and approved. The director is still running the agency. He had spent four months trying to manage the situation himself before calling us. The formal resolution took eight weeks from the point of our appointment.
Your Options When You Cannot Pay
The right route depends on whether the business has a viable future.
Company Moratorium
A statutory moratorium provides a formal 20-business-day breathing space in which all creditor action is legally halted – without the company entering administration and without the directors losing control. It creates the protected time needed to develop and implement a rescue plan.
Company Voluntary Arrangement (CVA)
If the business is fundamentally viable but the accumulated debt is unmanageable in the normal course of trading, a CVA allows you to restructure repayments to creditors over an agreed period – typically three to five years – while continuing to trade. Once a CVA is in motion, creditor enforcement is halted.
Creditors’ Voluntary Liquidation (CVL)
If the business cannot be saved, a CVL allows you to close the company on your own terms – before a creditor obtains a court order and removes your control entirely. It stops the chasing, protects your position as a director, and ensures creditors are dealt with fairly.
Ready to Stop the Pressure?
Our first conversation will establish clearly what your options are – and which one is right for your situation.
Speak to Mike Chamberlain – book a free, confidential call
Frequently Asked Questions
Can debt collectors enter my business premises? Debt collectors are not bailiffs and do not have the power to enter your premises or seize goods without a court order. If a debt collector visits, you are not required to let them in or speak to them. They have no more legal authority than any other member of the public. This is different from a certified enforcement agent, who does have court-backed authority in specific circumstances – see below.
What is the difference between a debt collector and a bailiff? A debt collector is a private agent employed by the creditor with no special legal powers. A certified enforcement agent – commonly called a bailiff – is authorised by the court to collect a specific debt and can, in certain circumstances, seize and remove assets. You will typically only encounter enforcement agents after a court judgment has been made and ignored. If an enforcement agent visits, seek legal advice immediately.
What should I do if I receive a winding-up petition? A winding-up petition is the most serious action a creditor can take and requires immediate professional advice. If you do not act before the petition is advertised in The Gazette, the company’s bank accounts will be frozen and the path to voluntary closure narrows sharply. [Read our full guidance on what to do if you have received a winding-up petition.]
Can I pay one creditor to stop them chasing me? With great caution. If the company subsequently enters an insolvency procedure, a payment made to one creditor in preference to others of the same class can be reversed by a liquidator as a preference transaction – and the recipient required to return the funds. Seek advice before making any significant payment under pressure.
Will creditors stop chasing if I tell them I am seeking insolvency advice? Often, yes. Most professional creditors and HMRC will pause enforcement action for a short period upon receiving formal correspondence from a licensed insolvency practitioner confirming that the company’s position is under professional review. This alone can create the breathing space needed to reach a structured resolution.
How do I stop creditors from calling my personal phone? Inform them in writing that the debt is a company matter, that you do not consent to personal contact, and that all future correspondence must be directed to the company’s registered office. This is a legally enforceable request. Continued personal contact after such a notice may constitute harassment.
Can I dispute a debt that I do not believe is valid? Yes – and you should do so promptly and in writing. If you receive a statutory demand for a debt you dispute, you have 18 days to apply to have it set aside. If a court claim is issued for a disputed debt, you must respond within 14 days. Silence is treated as acceptance.
