Advice on winding up petitions
If your debtor is a limited company or partnership then you may present a Winding up Petition against the debtor. It is not necessary to obtain an unsatisfied Judgment or to serve a Statutory Demand before presenting a Winding up Petition however it is always good practice to give notice to the debtor of your intentions and can often result in payment being made before substantial fees are incurred.
The Winding up Petition is presented in the District Registry local to us and like a Bankruptcy Petition, must be personally served on the Company at its registered office address.
Following service of the Winding up Petition this is then advertised in the London Gazette, which usually results in the Company’s bank account being frozen thereby affecting its ability to trade, which is often enough of a threat to prompt payment of the debt and costs.
If no response is received from the debtor to the Winding up Petition the Court usually orders that the debtor be wound up at the hearing, as long as all the required formalities have been complied with and a liquidator is then appointed.
Again the costs of Winding up proceedings can be prohibitive and the Court fee and Official Receiver’s deposit is substantial.
With both Bankruptcy & Winding up Petitions we can nominate an Insolvency Practitioner who we have a working relationship with and trust to act as the Trustee in Bankruptcy or Liquidator.