Published: 26/03/2019 By Lindsey MooreIf attempts to recover money from your company have failed, a creditor who is owed more than £750 may submit a winding up petition to the courts to have your company wound up. It is an expensive procedure for creditors and is generally seen as a last resort. A petition is usually preceded by a statutory demand which will have given your business 21 days to pay before the matter is progressed.
This is possibly the most serious threat a business can face and should not be ignored. If you do not take immediate action, it will most likely result in a compulsory liquidation of your company.
The Petition will be advertised in the London Gazette as a public notice. Consequently, it is likely that the company’s bank accounts will be frozen, which tends to put a stop on trading.
Furthermore your suppliers and lenders may cease to deal with your business further exacerbating the company’s problems.
Therefore, if you receive a petition you should seek immediate advice from a licensed insolvency practitioner. An Insolvency Practitioner can help the directors, to review the possible alternatives to Compulsory Liquidation. If appropriate, an adjournment of the hearing of the petition in Court will be sought to enable you to get further time to make payment or pursue other options.
If you have received a Winding Up Petition please give us a call on 020 8661 7878 , the first meeting is always free of charge and 100% confidential.