Winding Up Petition Advice
Do you need expert advice about a winding up petition? If so, you have come to the right place as Bridge Newland Limited are specialists in advising clients on this form of recovery tactic used by creditors and have assisted hundreds of clients in dealing with petitions served on their Company.
Below is a summary of purpose of a winding up petition and what we can do to help:-
Advice on Winding Up Petitions
Winding up petitions are a formal demand for payment of a debt in full, with the penalty if the demand is not paid, being that a judge (at a hearing) would likely place your Company into Liquidation and it having to cease to trade.
If you need advice regarding a winding up petition it is likely that either H.M. Revenue & Customs (“HMRC”) or another creditor, has either threatened to issue your company with a winding up petition, or has already served you with one. Therefore, time is critical and our advice is to seek our support early to make sure that you can choose from all options available, well in advance of the hearing or if needs be, so that we can arrange attendance at your hearing to fight your case.
I have received a winding up petition what can I do?
There are many things which can be done to avoid your Company being placed into Liquidation and therefore do not throw the towel in just yet! Here are the various actions you can take, with each being actions that Bridge Newland can assist you with:-
1. Dismiss the Petition – Whereby we seek to get the petitioning creditor to withdraw their petition. This is usually only done if their debt is either paid in full or at least the costs of their petition (typically £830) are paid and a voluntary liquidation process is proposed with us upon their approval to this. As HMRC issue the majority of winding up petitions, our previous dealings with them ensures that we have built up a good working relationship with their petitions department and are likely to achieve a dismissal of the petition providing we can meet their conditions.
2. Request More Time – This is where we seek a formal delay of the hearing for the petition. Again, this can often require the payment of the petitioning creditor’s costs, but will depend upon the circumstances of the case. This extension to the hearing date, to consider your petition, will allow you to raise sufficient funds to pay the debt in full or it will give you time to place the Company into Creditors Voluntary Liquidation (with an Insolvency Practitioner you have instructed).
How easy is it to get a 2nd postponement to a Winding up Petition?
This can be done by Bridge Newland quite easily providing that you can evidence to the judge that there is a genuine reason for requiring more time e.g. money expected to be received shortly which would be sufficient to pay the debt in full or that the petition debt is disputed and evidence still needs to be gathered).
3. Dispute the Petition – Where we arrange for attendance at the hearing to dispute the petition debt and ensure that the judge strikes it out as invalid. This can be risky as the court judge can make an order to place the Company into Compulsory Liquidation if the petitioning creditor validly proves their debt (and because this debt should have been disputed at an earlier stage).
Bridge Newland Limited can assist with all of the above Winding up Petition solutions therefore for specialist help, contact our free phone number on 0800 612 6197 or for adjournments, see our packaged solutions page.