A winding up petition is a legal notice put forward to court by a creditor.
The creditor can petition the court to force an insolvent company into compulsory liquidation.
A creditor can present a winding up petition if they are owed more than £750 and it has been unpaid by more than 21 days.
After a winding up petition has been served, the courts will hold a hearing to establish if the company is truly insolvent and cannot pay its debts. If the company is deemed insolvent, the court will issue a winding up order and will appoint an Official Receiver to liquidate the insolvent company.
How Long Does a Winding up Petition Take?
After receiving a Winding up Petition you will have 7 days to act.
It is important that you respond immediately, or risk your company being forced into liquidation.
Coronavirus Impact
Due to the ongoing pandemic the Government have confirmed that no statutory demands or winding up petitions can be issued against a company that has been impacted by Cornavirus. This is applicable until 31 December 2020.
Paul Bailey FABRP, Tom Ahmad FABRP ACA, Matt Reeds MABRP and Kirren Keegan MABRP are licensed to act as Insolvency Practitioners in the UK by the Institute of Chartered Accountants in England & Wales
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