Contributing to a winding up petition can be presented to a company by a single creditor or jointly by more than one creditor.
In each case, the creditor must be able to prove the existence of the debt and ensure that the debt itself, or the amount owing, is not in dispute.
A winding up petition will initially be presented by a single creditor. However, once other creditors are made aware of the petition, they can choose to support or join the winding up petition if the amount they are owed is in excess of £750, and usually, if a statutory demand or county court judgement (CCJ) for the debt has already been issued.
If a creditor does wish to contribute and support the winding up petition they should take the following steps:
How to support a winding up petition
If you wish to support the petitioning creditor and contribute to a winding up petition, creditors need to gather together all the information that proves the existence or the debt and shows the attempts that have been made to collect the debt. This includes evidence of statutory demands or CCJs, letters of demand, invoices, collection letters, phone call logs and anything else that shows the business has attempted to collect the debt without success.
If you have uplifted any county court judgments to the high court enforcement officers and had a warrant returned please include these.
This process will allow you to join the petition as a supporting creditor.
How to join the petition
If you choose to join a winding up petition as a supporting creditor, you should gather all the evidence you have. This includes invoices, collection letters, letters of demand, phone call logs and any other documentation you have that proves the existence of the debt.
The next step is to contact the petitioning creditor to ask to join the winding up petition and be recorded as a supporting creditor. If you do not know the details of the petitioner creditor, it is possible to find their details in the public records of court filings or the advertisement of the petition in The Gazette. If there is no record showing in the London gazette, It could be that the creditor is filing the winding up petition without legal assistance, but in most cases, a solicitor will file the petition on the creditor’s behalf. Check the Gazette daily as winding up petitions are show ton the digital site daily.
As a supporting creditor, you are entitled to attend the winding up hearing and make representations to the court. It is important to note that joining a winding up petition is no guarantee that the debt will be recovered. There is a strict repayment hierarchy in liquidations and unsecured creditors will only be repaid once secured and preferential creditors have received the money they are owed.
You should then sign and return any documents you receive from the petitioning creditor.
Is there a cost to joining the winding up petition.
There is no cost to joining the winding up petitions as a supporting creditors, the petitioning creditor will have already paid the court fees of £280.00 and petition deposit of £1600.00.
Need help to support a winding up petition?
For more information about becoming a supporting creditor or issuing a winding up petition, please call our team or send kindly send us an online enquiry.
Frequently asked questions
Supporting creditors should gather together all the information that proves the existence or the debt and shows the attempts that you have made to collect the outstanding debt. 1. This includes evidence of statutory demands or Issued County Court Judgments, letters of demand, invoices, collection letters, phone call logs and anything else that shows the business has attempted to collect the debt without success. 2. High court enforcement or bailiffs reports or the returned warrant of control.
A supporting creditors is a second party that has joined with the petitioning creditor that has prepared, filed and served a creditor's winding up petition to a limited company. A supporting creditor can also support a personal bankruptcy. How to support a winding up petition
What is a supporting creditor?
Conclusion
A joint winding up petition is a legal process in which two or more creditors of a company petition the court to wind up the company’s affairs and distribute its assets among the creditors. Contributing to a joint winding up petition can be a beneficial action for creditors as it allows them to take a proactive role in recovering their debts and ensures that the winding up process is conducted in a fair and orderly manner. It is important for creditors to carefully consider the potential consequences of contributing to a joint winding up petition, as it may have implications for the company and its directors.
Read more: Can a winding up petition be stopped in Scotland
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.