Winding Up Petition
If you have received a winding up petition you probably feel you’re in a corner with nowhere to turn. Even when the obstacles prove insurmountable, our expert guidance can help.
A winding up petition is extremely serious and is the final step a creditor can take against your company in the case of an unpaid debt.
Acting immediately is essential though as the consequences can severally affect the options for you and your company. When a winding up petition is issued you have 7 days to repay the debt before the Creditor can take further action, advertise the petition and ultimately can place your company into compulsory liquidation.
What happens if you don’t take action?
- Banks can freeze your accounts leaving you unable to make further payments
- Your winding up petition will be public information and may encourage other creditors to take action
What is the Winding Up process?
- A winding up petition is served to a company detailing a date for a hearing
- From the date of service of the winding up petition a company has 7 days to act
- The petition will be advertised and will then be public information
- The company will be placed into compulsory liquidation. Once this has happened you will lose control and have no influence over how your company is wound up
What action can be taken ?
- Depending on the circumstance we may be able to negotiate a Company Voluntary Arrangement (CVA), this means you set up a payment plan with the creditor to repay the debt over a period of time.
- Apply for an adjournment so that other options can be explored, an insolvency practitioner can do this whilst discuss with you alternative options
- You could place the company into administration, this would prevent creditors taking any further action and allow you greater control in the process.
- Explore alternative methods of funding such as Asset Finance to repay outstanding debt.