Winding Up Petition

A Winding Up Petition is the process of compulsory Liquidation commenced by a Creditor. If a Winding Up Order is made then the Official Receiver / Liquidator will be appointed to liquidate the company's assets in order to pay all Creditors. This is a very serious issue for companies that owe money and needs to be acted upon immediately especially if a director has given a personal guarantee.

It is unusual that a creditor would opt to petition for a company to be wound up straight away. Creditors would normally chase the outstanding money by way of letters, phone calls or emails. If these are unsuccessful they may well instruct help from a bailiff or debt collection agency, which may ultimately result in serving a statutory demand or registering a County Court Judgement against the company. Having said that, if the debt is more than £750.00 then the creditor is at liberty to issue a Winding Up Petition without the need of doing the aforementioned.

If your company is on the receiving end of any of these attempts to chase for payment, then these are serious and real indicators that the company has a financial issue and therefore they should not be ignored. The sooner the company takes action to deal with these issues,  the more options that will be available to the company and its director(s).

For help on this and other matters please feel free to contact us.