How to wind up a company that owes you money
If you’ve reached a point where attempts to negotiate payment of a debt have failed then you may have to consider a winding up petition.
The first stage is to establish that the debt is due. This is important as presentation of a petition at court could be rejected by the court if
the debt is not proven as due. In many cases this requires presenting a County Court Judgement and then a Statutory Demand both
of which have not led to the debt not being settled. Each situation will need its own consideration.
To present a petiton in court would usually need the services of a solicitor. We have experienced solicitors that can act to present a winding
up petition in court.
At Liquidation.co.uk we are Insolvency Practitioners who can act as Liquidators of a company that has been placed into liquidation by
the court following the presentation of a winding up petition.
In many cases the presentation of winding up petition is used as a final negitation tool in collecting a debt; please be clear though that a winding up peition
does not guarantee payment of the debt.
What is a Winding Up Petition?
- A Winding Up Petition is a court stamped document that confirms that a Petition for the Compulsory Liquidation of a company has been presented to the relevant court
- The petition will set out a date for a court hearing for the company to be placed into Compulsory Liquidation
- If the company is then placed into Compulsory Liquidation the period between the presentation of the petition and the date of the liquidation will be subject to detailed review by the liquidator and any transactions that are not in the general interest of those owed by the company may be legally reversed by the liquidator
Why Would A Winding Up Petition Be Presented?
- When a money is due from a Limited Company to a third party (individual, business or company)
- Attempts to get payment from the Limited Company have been unsuccessful
- A Winding Up Petition will usually, for non HMRC debts, be preceded by a County Court Judgement (CCJ) and a Statutory Petition; HMRC do not need to follow these steps
When Would A Winding Up Petition Be Needed?
- When attempts to get payment from the Limited Company have been unsuccessful
- All other attempts to obtain payment or settlement (a mutually agreed repayment plan) have not been successful
What Happens Following the Presentation of a Winding Up Petition
- The petition document will have a date noted on it which is the date of the winding up hearing
- This will take place at the court noted on the petition
- Without any action by the company that has received the petition, the winding up hearing will place the company into compulsory liquidation
What Are the Options For The Company Once It’s Received a Winding Up Petition
- Do Nothing
- The company will be placing into compulsory liquidation at the hearing of the petition on the date set out on the petition
- The petitioner must advertise prior to the hearing date of the petition
- It is usually following the advertising of the petition that the company’s bank account will be frozen by the bank
- Pay the debt listed within the petition
- Be aware that it is much easier to do this before the petition is advertised as once the company bank account is frozen then a court application to release the funds for payment is usually required
- Consider an Alternative Solution
- In the majority of cases if the third party that presented the petition may be willing to accept the company undertaking an alternative insolvency/rescue procedure
If you would like to understand more about Company Liquidation/Winding Up please follow this link to The What, Who, When, Why and How of Company Liquidation
And if you’d like to understand more about all of the options for your company please follow this link to the Options For Your Company or Business
A Bit About Us?
As you would expect, we’re experienced, licensed and commercial company winding up experts.
We’re hugely experienced in making your life as simple as possible; we’ll take over any difficulties immediately
Start your company liquidation today and protect your personal assets
Company debts will be written off unless a guarantee or personal security has been given
What you might be surprised to learn is the number of directors that we are able to help to find an alternative solution for their company.
You’ll be delighted to hear that our costs are only one of the reasons that many of our clients use our services.
You may also understand that the correct advice at the outset will save money and protect your personal finances.
Our Support Will Help
- We would like to offer you a Free Options Review with one of our Licensed Insolvency Practitioners
- We, that’s Martin, Carolynn and Richard, would be glad to explain your options to you; no jargon and no obligation
- Simply call or leave your details and we’ll contact you
- We do understand that this may be the first time that you’ve had to consider such a conversation
- There’s no cost to speak to us and if you do need a formal process are costs will be a pleasant surprise
- We are here to guide, inform and support you
- Our advice will be geared to your company‘s own position
- With our help you’ll be able to make an informed decision on the best solution
- We’ve a team of 20 in total and have been established for 40 years
What Do We Need From You?
- A little bit of your time please
- Some background about your company
- What would you like our immediate help with?
- Is there a business within your company that you would like to save and continue with
Don’t like nasty surprises ?
Neither do we.
We’ll be honest and open with you which will mean no surprises for you as we undertake our legal requirements as liquidators.
We do ideally need to speak to you to advise you properly and often we will meet as well, if that is what you would prefer.
Why speak to us?
- Liquidation.co.uk is owned and operated by F A Simms & Partners one of the most reputable and long established independent licensed insolvency practices.
- We’re bricks and mortar and have a team of 20 ready to assist.
- 2018 is our 40th year in business having advised and helped 1,000’s of businesses over that time.
- Our administration centre is in Lutterworth in Leicestershire which means our costs are kept at a manageable level. From this base we cover the UK.
- Our directors are experienced, practical and commercial insolvency practitioners who also own our business.
- We are not and don’t use brokers or consultants so there’s not need to pay twice to reach a licensed insolvency practitioner.
- We’re actually very normal, approachable people who happen to work in the insolvency and rescue sector, we work hard and take pride in what we do!
- Our reputation with our customers, partners and across the UK is the result of hard work and we will not damage that through poor advice.
If you are thinking about having to liquidate a company you will be faced with a mass of information from websites seeking to convince you to speak to them.
It’s not just the information that is freely available on the web that you will need to understand before deciding whether to liquidate and who to call on for help to liquidate.
It you do not fully understand both the process and the risks of liquidation you could be taking on a host of new problems that you weren’t aware of.
Whether your company cannot pay those that it owes money to or has assets or cash to distribute to its owners, we can help.
Why not get in touch and speak to one of our licensed insolvency practitioners who are also our company directors. We can offer practical advice to help you make the best decision for your unique circumstances.
It’s free for a consultation and our advice is confidential.