Restrictions lifted on Winding up Petitions
On 1 April 2022 the restrictions introduced during the pandemic pursuant to the Corporate Insolvency and Governance Act 2020 were lifted and creditors can now issue a Winding up Petition against a company for debts over £750.00, provided no dispute has been raised by the debtor.
A letter of demand must still be sent to the debtor requesting payment but this can be done with a short response time and we demand payment within 72 hours.
In the absence of payment (or any dispute regarding the debt) an application can be made to the Court for a Winding up Petition. Following issue and service of the Petition a Notice will be advertised in the London Gazette which will ultimately result in the company’s bank account being frozen.
The threat of a Winding up Petition has always been a useful tool in the recovery of monies due and in situations were a debtor has several creditors, the creditor threatening such action will usually be paid first over other creditors.
If you have any queries arising from the above, or would like to suggest a topic for a future article, please contact Chris Drinkall on 01482 337367 or email@example.com Chris can also be followed on Twitter at @drinkall_chris and on LinkedIn.