If your company owes money to creditors and hasn’t responded to their demands for payment, you may receive a winding up petition (WUP).
A winding up petition is a legal petition from a creditor. It’s the most serious legal action that a creditor can take against your business. Via a winding-up petition, a creditor can permanently close your business via the courts through the compulsory liquidation process.
If your business has received a winding-up petition, it’s important that you act immediately to protect your business. Contact us now to talk to our insolvency experts and learn more about your options for responding to a winding-up petition.
A winding-up petition is a type of legal action taken by a creditor. If a creditor is owed money and hasn’t been paid after making a statutory demand, they may file a winding up petition to recover the amount they’re owed via the courts.
If a creditor issues a winding up petition, a court hearing will be held. If the winding petition is successful, the creditor may receive a winding up order. This leads to compulsory liquidation and the closure of your business in order to repay your creditors.
Winding up petitions are publicly advertised in the London Gazette. Receiving a winding up petition not only puts your business under legal pressure — once it’s advertised, it may also affect your customer, supplier and banking relationships.
In order to issue a winding up petition, a creditor needs to be owed at least £750. They also need to be able to demonstrate that your business has ignored previous demands to pay its debts.
If your business is the subject of a winding up petition, it’s important that you speak to an expert and take action as quickly as possible. A winding up petition is typically the final step a creditor will take to recover debt and is a serious legal message to your business.
As specialists in insolvency, we’ve helped hundreds of UK businesses successfully respond to winding up petitions and legal demands from creditors. If you’ve received a winding up petition, contact us as soon as you can for a free, private consultation to discuss your options.
As a company director, you’ll need to cease trading immediately if your business is insolvent or likely to soon be insolvent. Continuing to trade while insolvent could expose you to charges for wrongful trading in the event that your business is liquidated and investigated.
A winding up petition is a serious issue that needs to be dealt with quickly. Several options are available for your business in the event that you’re subject to a winding up petition:
The best options for your business may vary based on your current financial situation and any existing agreements you have with creditors, suppliers and employees. Contact us to speak to our insolvency practitioners about your options for responding to a winding up petition.
If you’ve received a winding-up petition, it’s important that you act immediately to protect your business. Failing to act quickly will result in the petition being advertised. In response, it’s very likely that your business’s bank accounts will be frozen, preventing you from trading.
Waiting until the petition is advertised significantly weakens your position, increasing the risk of your company being liquidated in order to pay creditors.
We specialize in insolvency and have helped hundreds of UK businesses in a diverse range of industries successfully respond to winding-up petitions from creditors. Our team can assist and advice you in taking swift action to preserve your business and avoid compulsory liquidation.
For more information or to discuss your situation, contact us now on 0800 9717185 or send us an email to schedule your free private consultation.
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