Winding Up Petition Process
If you are currently facing a winding up petition, it will no doubt be a worrying time. While it is, of course, a serious matter, it is one that can be dealt with in a number of ways by an insolvency expert who can protect your financial and legal interests in the most effective way possible.
Here at The Insolvency Experts, we are experienced in handling a number of financial matters including winding up petitions, having handled such situations for many clients around the UK. We can guide individuals and businesses through the complexities of a winding up petition procedure and find the best way to deal with any winding up petition taken out against them.
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Four Key Questions on How Winding Up Petitions Work
What is a winding up petition?
Having a winding up petition brought against your company can be a stressful time. The winding up petition procedure 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.
How do I know if I’m subject to a winding up petition?
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. The winding up procedure can be a complex process, one that shouldn’t be taken lightly. Once the winding up petition procedure has been granted, it will be advertised in “The Gazette”, often prompting other creditors to take action against your outstanding debts.
What’s the best way to deal with a winding up petition procedure?
Acting quickly is key in any winding up procedure – the sooner you seek insolvency advice from a trusted professional with the necessary 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; a time consuming and costly process
- Issue new securities or charges
- Issue a NOI (Notice of Intention) to appoint an administrator
- Propose and negotiate a CVA (Company Voluntary Arrangement)
- Defend the petition
- Enter administration
How do I find expert help with a winding up petition?
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 and want to know more about the winding up procedure, you can contact us by calling 0300 303 8284 or emailing email@example.com to speak to our insolvency experts and find out more about your options. Even if a winding up petition procedure has already been granted, there are still a range of winding up procedure options available to you.