Creditors use winding up petitions to enforce the payment of debt that is owed by a business. The petition is often a last resort in which creditors ask that the business be liquidated. Winding up orders are usually preceded by a petition and a statutory demand for payment, which is a last chance for an agreement to be reached. If you receive a winding up petition, you need to act quickly to save your business.
Stop a winding up petition with a CVA
It is advisable to seek the support and guidance of a licensed Insolvency Practitioner if your business is facing any kind of financial difficulty. There are a number of courses of action that can be taken within seven days of receiving a winding up petitions. For example, if all payment is made to the creditors then the petition is withdrawn. A Company Voluntary Arrangement (CVA) could be proposed, providing extended payment terms, and giving your business the opportunity to recover and avoid liquidation. An alternative course of action would be to place the business into administration. This is done with the intention of paying off the debt that is owed through the valuation and sale of company assets. Putting your business into administration, although a serious step, does halt all legal action against you. Disputing the amount or existence of the debt owed to your creditors is one option although you must ensure that your facts and figures are sound. Speak to The Insolvency Experts today before making any major financial decision if you’ve received a winding up petition. Let our experts ease the burden and advise you on the best course of action for your business. Contact The Insolvency Experts If you’re a business facing difficulty or a winding up petition, get in touch with The Insolvency Experts today to receive professional financial advice. Contact us online or speak to one of our Insolvency Practitioners directly by calling us on 0300 303 8284 now.