- March 1, 2023
- Posted by: Gill Hadley
- Category: Uncategorized
In the event that one of your creditors filed a winding-up petition You must be quick to stop your business from being liquidated for force. A compulsory liquidation signifies that it will shut the business permanently and will lead to a thorough investigation conducted by the Insolvency Service into your conduct as director.
There are ways to avoid a winding up order from being granted. It is imperative to act quickly in such situations and you should get help from an insolvency professional licensed (IP).
UK Liquidators specialise in corporate insolvency, and they can offer the immediate information you require.
Are you concerned over your bounce back Do you have a problem with your loan?
If you’re a restricted director of a business and you are concerned about how you will pay back your Bounce Back Loan, we’re here to assist. As certified insolvency professionals, we can help you navigate your options with regards to paying back the remaining Bounce Back Loan, as also handling any negotiation with the creditors you owe on your behalf. Contact us today .
How does a winding-up petition is submitted by the creditor?
A winding up petition is a significant and costly move for a creditor undertake. You’re likely to have had many unsuccessful attempts to recover their funds, and want to shut down your business with hoping to receive some sort of compensation through the liquidation process.
When a petition has been filed with the court system, you have seven days to take action after it’s published in the Gazette the bank will stop you from trading and block your trading.
How do you contest or stop winding up a petition? And what is the consequence in not taking action fast enough?
Get professional assistance
If you discover that your business is in the process of submitting an insolvency petition, you should seek advice from an insolvency professional licensed by the state. They’ll be able to offer solid guidance on the best way to proceed and provide practical assistance when needed.
Our experts are able to provide you with a one-hour consultation at no cost to evaluate the situation and suggest the best way to proceed.
What should you do if an order to wind up was issued
Here are a few possibilities available to you:
Pay off the outstanding
Making your debt payment in full with all charges included can stop the court proceedings when you pay promptly. Be aware that if your petition is already published in the Gazette and a different creditor may ‘take over the petition as it relates with their debt. This is among the reasons that taking action prior to the petition being publicly announced is essential.
You can apply for an adjournment
If you’re able to pay off the debt in full , but need to wait a few days to put together the funds or you’re planning to sign a Company voluntary Arrangement (CVA) in which case, you could be successful in seeking an adjournment.
Resolve the credit
If you suspect that the creditor is using the request to pressure you into making payments or if you really dispute the debt at issue You can file a petition for an injunction to ensure that the petition doesn’t appear in the Gazette and you can then contest the debt before the court.
Enter Creditors’ Voluntary Liquidation (CVL)
If you’ve had professional insolvency advice but there’s no possibility of salvaging the company or paying back the debts of the company Insolvency liquidation that is voluntary is a viable option.
It allows you to be in compliance with the strict insolvency laws within the UK In essence you’re shielding your creditors from additional loss, however you could also be able get redundancy compensation as director.
If you can show that you’ve worked for the business as an employee with an employment contract, and earning a regular wage via PAYE It could be a way to help to pay for this liquidation procedure.
UK Liquidators are able to provide additional information on what you should do when your company is subject to a winding-up petition. Don’t hesitate to contact us in these situations and we will quickly evaluate your situation and assist you to decide the best course of action.