If you receive a Winding Up Petition from one of your creditors, it could potentially only be a matter of time before your Company could be forced to cease trading. The receipt of a Winding Up Petition is a serious threat by a creditor to recover their outstanding debt and if left unanswered, could result in your Company’s affairs being taken out of your control.
What should I do if I receive a Winding Up Petition?
First and foremost, if it is an oversight on your part and your business is capable and, has the resources, then it would be wise to settle the amount owed, unless of course it is disputed. In the event that your Company does not have the resources to settle the debt, then it would be prudent to take professional advice immediately from a Licensed Insolvency Practitioner.
Is a Statutory Demand a Winding Up Petition?
No. A Statutory Demand is usually the first step a creditor will take to let you know that they intend on petition for the winding up of your Company. If a Statutory Demand goes unanswered for 21 days after service, the creditor will then have the necessary authority to go ahead and petition for your winding up.
What Should I do if I Receive a Statutory Demand?
If you believe the debt to be true and concur that it is due for payment, then if your Company has the necessary funds to discharge the debt in accordance with its ongoing trading plan, then payment should be made as soon as possible. In the event that the Company’s cash flow does not allow for the statutory demand to be paid, contact a Licensed Insolvency Practitioner who will provide you with the guidance and advice needed to respond to the threat that comes with the receipt of a Statutory Demand.
What happens if I Don’t have the funds to settle a Statutory Demand or Winding up Petition?
If your Company does not have sufficient funds to discharge its liabilities as and when they fall due, then your Company could be insolvent and it is therefore important that you speak with a Licensed Insolvency Practitioner at the earliest opportunity. A Licensed Insolvency Practitioner might not only be able to protect your business, but it will also ensure the directors personal position is protected in so far as possible too. Should you decide to carry on trading after the receipt of a Statutory Demand or Winding Up Petition, you could be faced with a claim for wrongful trading.
Is a Winding Up Petition public?
A Creditor may choose to advertise the petition in the London Gazette, subject to certain conditions. If a creditor takes such action, it usually signals the end of your business as the Company’s financiers will see the advertisement and will likely freeze its facilities with you. Other creditors may also see that a petition has been issued against the Company and refuse to make future supplies.
Can a Winding Up Petition be dismissed?
In certain situations, a Winding Up Petition can be dismissed. However, you will need the help of Licensed Insolvency Practitioner to do this. If you received a Winding Up Petition, or a Statutory Demand and you are unsure as to which way to proceed, then contact CFS Restructuring LLP today for free confidential advice.
When should I take Advice in relation to my Company’s affairs?
If you have received a Winding Up Petition, then you do need to take advice as soon as possible. In the event that you are concerned about your Company finances, then speak with a Licensed Insolvency Practitioner as soon as possible, a reputable one will provide with you with free advice and guidance.
Does a creditor have to serve a Statutory Demand before issuing a winding up petition?
No. If a creditor already has been successful in obtaining a County Court Judgement against your Company for an unpaid debt, they could if they were so minded, go straight to issuing a winding up petition without the need to serve a statutory demand. So, if your Company is in receipt of any County Court Judgements, then it would probably be wise to take some free confidential advice.
Will HMRC issue a winding up petition for unpaid VAT and PAYE?
Yes. Should you not settle your ongoing liabilities with HM Revenue & Customs, they will eventually issue a winding up petition.
How much will I cost me to stop a winding up petition?
The creditor who has issued the winding up petition to you will likely have incurred costs of somewhere between £1,500 to £2,500, so in addition to the debt itself, you will also have to settle the issuing costs too. In addition, you might also need the help of a solicitor to attend Court to have the petition dismissed.
However, if your company has no prospect of being able to stop the winding up petition, contact CFS Restructuring LLP today. We have what is acknowledged to be some of the lowest professional fees in the profession and all initial advice and guidance is provided free of charge. Only in a formal matter will fees be incurred and these will be agreed, in writing, beforehand. So, if you are concerned about your Company’s financial position, get in touch with CFS restructuring LLP today.
What happens if I don’t dispute a Winding up Petition and wait?
If the Court grants a winding up order, the Official Receiver will be appointed Liquidator of the Company and will begin realising the Company’s assets for the benefit of its creditors.