A Winding Up Petition (WUP) is the most serious action that can be taken against a company and usually is only issued if a creditor is determined to recover an undisputed debt or put the company out of business because the debtor company is believed to be insolvent.

The creditor will issue a statutory demand, which is a formal notice giving the debtor 21 days to settle the debt. If it remains unsatisfied after that time the creditor makes an application to the High Court or a Chancery Court (a division of the High Court) District Registry to wind the company up. 

If you receive a WUP, you must act quickly and should contact business expert Peter Murray on 020 7504 1300 immediately as there may still be time to discuss options such available to for the company.  This does not have to be the end of the road if you wish to carry on trading .

The post How Do You Issue a Winding Up Petition? first appeared on Company Debt Recovery.

Cardiff was taken over in May by Malaysian gambling and property tycoon Sri Vincent Tan Chee Yioun and is just one of several English football institutions to fall foul of HMRC recently.
 
This year alone, Portsmouth, Preston, Notts County and Southend have all faced winding up orders.
 
Settling your bill is a sure way to get a petition dismissed. However, there are several ways to avoid a winding up order – compulsory liquidation.
 
Winding up petitions can be withdrawn if:
 
i)                   The petitioner decides there is no value in winding the company up. Once the threat is delivered and the debtor doesn’t pay, the petitioner may be unwilling to front the full cost of winding up proceedings.
 
ii)                The petition has not been advertised in the Gazette
 
iii)              No other creditor has supported the petition
 
iv)              The debtor gives consent
 
 
They can be dismissed if:
 
i)                   The debt has been paid
 
ii)                  The debtor goes to court and proves the petition has no real basis; disputed debt
 
iii)                There is a technicality. A petition needs to be spot on when issued and served. If it’s not technically correct, a judge can grant leave the petitioner to and amend it.

The post How Are Winding Up Petitions Dismissed and Withdrawn? first appeared on Company Debt Recovery.