Is Your Business Subject To A Winding Up Petition?

Act quickly if your business has received a Winding Up Petition

Debts can mount and often we think that if we ignore them they may go away, but that isn’t the case. It could be that your business is owed money but, no matter what you do you can’t seem to get paid and so you’re in a vicious circle that will leave you stressed and extremely worried.

Within just a matter of days your winding up petition could be printed in the London Gazette which will alert all of your other creditors and allow them to “join” the petition and possibly spur them to further action themselves. Your bank account is likely to be frozen, which will just add to the difficulty the business is in.

This will cause numerous problems for you and your business so it is imperative that you speak with a professional as quickly as possible.

How we can help to stop a Winding Up Petition

We will immediately seek to protect you from this aggressive recovery method by seeking consent from your creditors for a “stay or an adjournment” of the action. If we can’t get consent for an adjournment, we will represent you in court and either defend the action and seek costs from the other side or seek a formal adjournment while a solution is proposed and agreed.

We can either resolve the claim by way of negotiation using our dispute resolution service or more formally look to restructure the business by way of a Company Voluntary Arrangement, Administration or Liquidation.

It is possible to stop a petition, but it needs very urgent action.  The petition can be advertised in The London Gazette 7 days after service and it really is wise to deal with it before this happens.  Once the petition is advertised, it can still be addressed.  However, once advertised the petition can be picked up by banks and credit reference agencies. As soon as the company’s bank is aware of the petition, they will freeze the company’s bank account with further trading is practically impossible.

Settle or Compromise the Debt

If you can, settle the debt.  Alternatively make an offer to the creditor which includes a sizeable initial payment and also agree to settle their costs.  It is likely (but not certain) that the creditor will agree to withdraw the petition on this basis.  If the petition has been presented by HM Revenue and Customs they will require the debt to be settled in full before the petition is advertised.

Request an Adjournment

Unless the creditor agrees to an adjournment of the hearing of the petition, you will need to attend court at the hearing to request an adjournment.  It is recommended that you instruct a barrister to attend with you.  It is now possible to instruct barristers direct, and if you give us a call we can help with this. The judge will need to be persuaded there is a good reason for the adjournment. If your business needs more time to raise the money, then it is recommended you provide the court with evidence that refinancing or raising the money is a viable option.

Contact us if you have received a winding up order

We know it will be difficult for you to pick up the phone and talk to someone or even to know who to trust. No matter whether your business is large or small we can help you. You can trust us for quick, straightforward,, impartial and professional advice that will enable you to get your business back on track.

We will provide free advice on the phone and it is looks like we can help with an insolvency process, we will then provide an accurate estimate of the likely costs involved.