Winding Up Petition
We act in matters where clients are looking to petition for the winding up a debtor if the debt is owed by a limited company then you can issue a Winding Up Petition. If the debtor is an individual or non-incorporated entity a bankruptcy petition can be sought.
If a Winding Up Petition is issued then the debtor company has very limited time in which to act. The creditor, particularly in the case of a company, has 7 days to either pay the debt in full, engage with their creditor to question the validity of the debt or enter into an arrangement.
Once a petition is advertised then it is not uncommon for banks to freeze the bank accounts. Thus, provided that the correct conditions exist, this makes the use of winding petitions a very effective tool to be used for the recovery of debt.
We will generally prepare the Winding Up Petition and presented to the court. In other words, we will issue the Petition on your behalf. If the court accepts and issues the Petition we will assist in serving the Petition on the Debtor in accordance with the current Insolvency Rules. The next practical stage we will undertake on your behalf is advertising the Winding Up Petition. A creditor must wait at least 7 days after the petition is issued before placing the advertisement.
It could be that your debtor has engaged with us but may not be fully able to settle the outstanding liability; we will advise you on suitable settlement terms or the seeking an adjournment or other suitable options. In short, we will discuss and advise you on the progress of your case and seek your instructions regarding the options available to you.
Assistance in challenging a Winding Up Petition?
After the Winding Up Petition is issued you have a few options to consider, but regardless of the course of action you choose to pursue, it must be done without hesitation; if the Court grants the winding up order it will be too late. You have 7 days to pay the debt in full, pursue an arrangement, or engage in a dispute with the creditor if the debts are questionable.
If the reason for the non-payment is genuine then it is important that you are represented. We can engage with your Petition Creditor to set out clearly the facts of the dispute, particularising any claims you have against the Petition Creditor.
In most cases where Winding Up Petition has been advertised, the bank account of Petition debtor is frozen and this can prove disastrous where the company is a trading entity as well as the leading to loss of reputation both by trading partners and other stakeholders of the company such as employees. In such circumstances, we may be advised that we seek an urgent injunction restraining the advertisement of the Petition. This must be done with good reason and properly and fully articulated before the judge before an injunction will be granted. We are able to assist with the presentation of your case.
If you are looking to take out a Statutory Demand, Bankruptcy Petition or Winding Up Order, or have been served with one, then you should contact us.
With our Head Office based in Hull and two Consulting Offices in London and Leeds we are easily accessible for consultations. Call us on 01482 616 616 or 0800 037 1305 to book a free telephone consultation to discuss your issues and requirements.
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