Winding up petitions
Provided you have made a demand to your company debtor, whether that is by a letter before action or a statutory demand, provided there are no disputes and/or the relevant period of the demand has expired, you are entitled to present a winding up petition against your debtor.
In order to present a winding up petition your debt must be over £750.00, uncontested and your debtor must be a limited or private limited company located within England and Wales.
Once a petition has been presented, the creditor must personally serve the petition upon the debtor’s registered office. Once served a creditor, provided that payment has not been received or an application to prevent the advertisement has not been made and 7 business days have elapsed, can be advertised in the London Gazette.
The effect of the advertisement should freeze the debtor company’s bank account, which will prevent your debtor from withdrawing monies from the company. Provided the winding up petition has been served, advertised and no payment has been received, a creditor can seek and order that the debtor company can be wound up at the hearing.
Winding up petitions are a very effective tool to help you recover your money. If you wish to find out more about how we can help you with winding up petitions, please contact us.