Opposing a Winding Up Petition

Opposing a Winding Up Petition

If you’re reading this then it’s likely you already recognise the severity of a winding-up petition, should it be issued.  However, there may be options available to you defend your position and prevent a winding-up order being granted. Once you are in receipt of a winding up petition, you’ll need to act quickly to save your company, and our team of expert lawyers can make a comprehensive assessment of your case and help you decide the most effective way of defending your company from liquidation.

Here’s What You Need To Know

If you believe you have grounds to challenge a petition then formally opposing it may be your best course of action. There are, however, only certain grounds through which a petition can be challenged.

One such ground is that you have a genuine dispute in respect of the debt stated in the statutory demand, and that dispute is based on substantial grounds. A second ground, is that you have a right of set-off against the petitioner, the sum of which must be equal to or exceed the amount claimed in the demand.

There are also other more limited circumstances surrounding procedural errors and delays of which we can consider when making an assessment of your case.

So what is the Procedure?

One must first file a Witness Statement in Opposition with the court. This involves filling out a form giving details of your assets and debts, and filing it with the court that sent you the Winding Up Petition. Pursuant to the Insolvency Rules this must be filed no less than 5 business days before the hearing date of the Petition.  In addition, it is a requirement that a copy of the evidence for the opposition be sent to the creditor who presented the Petition, and this must be done within a reasonable time.

Being subject to a Winding Up Petition you are entitled to appear at the petition hearing in order to oppose the creation of a winding up order. Although we strongly recommend that your company seeks a legal representative experienced in such matters to appear at the hearing on your behalf, directors (and only directors) of the company are also entitled to do so.

How Can We Assist You At Your Winding-Up Hearing?

The law surrounding insolvency is complex, and it is unlikely that a layman, even one well-versed in company law, will be able to achieve a successful outcome at hearing without a certain level of knowledge on the ever-changing insolvency rules. This is particularly so since the COVID 19 pandemic, as there has been an influx of new legislation around company insolvency to stay abreast with. We can say with certainty that instructing specialist insolvency lawyers like those at Hallmark Solicitors will likely be safer and far more beneficial for your company than if you were to seek to conduct the litigation yourself. Court room negotiation is our forte, and our team will assist you in preparing your argument and requisite court forms to ensure you the best chance of success at hearing.