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Looking to liquidate your business? For help call 0300 303 8284
Looking to liquidate your business?
For help call 0300 303 8284

What is a winding up petition?

If a winding up petition is brought against your company, it can be a stressful time. They can be issued by any creditor who is owed more than £750, seeking compulsory liquidation of your business so that they can raise money from your assets to pay off your debts.

If a creditor is threatening your business with a winding up petition you should act before it is issued, as once granted, it can significantly harm your business. For example, if your bank learns that someone has been granted a winding up petition against your business they may freeze your bank account to protect their interests.

Professional advice on winding up petitions

A winding up petition will lead to the case being heard in court, the purpose of this hearing is to decide whether your business is insolvent or whether it can remain operating with a view to the debts being paid. It is a complex process, and shouldn’t be taken lightly. Once it has been granted it will be advertised in “The Gazette”, often prompting other creditors to take action against your outstanding debts.

Acting quickly is key – the sooner you seek insolvency advice from a professional with experience, the more you can do to help prevent a winding up petition from being followed through, including stopping your business bank account from being frozen.

Once a winding up petition has been received, your options have reduced, as you can no longer:

• Sell the company or its assets (without it potentially being reversed by the courts)
• the company and shareholders can no longer place the company into administration without an order of the court which is both a time consuming and costly process
• Issue new securities or charges
• Issue a NOI (Notice of Intention) to appoint an administrator

Apart from settling the debt, there may be a couple of options available to you. We may be able to assist you:

• Propose and negotiate a CVA (Company Voluntary Arrangement)
• Defend the petition
• Enter administration

Contact The Insolvency Experts for help

It’s vital that you fight a winding up petition as swiftly as you can, to protect your business and your own personal career in the short and long term. If you’ve been served a winding up petition or you’re concerned one is due soon, call us on 0300 303 8284 and speak to our insolvency experts to find out more about your options. If one has already been granted there are still options available to you.

Our insolvency experts are here to help Call 0300 303 8284

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Winding up petition
michael beal