The winding up petition process can be confusing, however, at My Debt Recovery we work with you to help you understand how the winding up petition works. As well as the steps involved before and after the process.
If you are looking to request a winding up petition, keep in mind that there are several steps you must take before the process can be fully actioned. Keep reading to learn more about the winding up petition process.
What is a winding up petition?
In simple terms, a winding up petition is a request from the court for a company to cease training and go into compulsory liquidation. If you are the creditor you should be owed at least £750 and already tried to reclaim the debt in various ways before a winding up petition would be considered.
How does a winding up petition work?
The way a winding up petition works is when a creditor meets all the requirements to file for the winding up petition you can apply to the court to close down the company. This may seem extreme for some, however, if a debtor owes you thousands of pounds and you have done everything in your power to reclaim the debt there is sometimes very little left you can do.
What happens before a winding up petition is issued?
Before a winding up petition is issued, there are several steps which must be followed for this action to be considered by the courts.
1: You as the creditor must have at least £750 owed to you by the debtor
2: You as the creditor must have taken steps to reclaim the debt such as: statutory demand, bailiff action, or working with a debt collection agency.
What steps are taken during a winding up petition?
When a debtor has failed to pay you as the creditor and the previously mentioned steps have been taken a winding up petition will be filed. It is issued by the courts and advertised 7 days before the hearing, this will allow other creditors to attach the debts owed to them by the debtor in the hopes of reclaiming monies owed.
When a debtor has received the petition at the registered address they will have the opportunity to pay the debt or oppose the request. If there is actual proof that the debtor can refute the petition the court won’t make the order. It is therefore essential that you as the creditor have everything you need in order to move forward with the petition.
Once the 7 days have passed there will then be a formal hearing in which the court will either dismiss or approve the winding up petition. If it has been approved the debtor will be served the order.
A liquidator will be appointed and information relating to the company’s assets should have been obtained.
How My Debt Recovery works with you
At My Debt Recovery, we work with you through every stage of the debt recovery process.
Our team assesses your case to make sure that all viable steps have been taken in order to move forward with the winding up petition.
Our team will advise you on the best steps to take, even if this means we recommend holding off on the winding up petition. Our debt recovery experts have years of experience and will advise the best solution for you in order to obtain all monies owed.
Our debt recovery agents will work to ensure you receive the monies owed in a timely and effective manner. Our team takes proactive steps to recovering debts and ensure you are set up for success.
Contact us today for debt recovery help.