A winding up petition is usually brought by a creditor when a debtor has failed to pay their debts.
However, if a letter before action does not result in payment then we can look at the option of issuing a statutory demand on your behalf. If your debtor does not reply to this within 21 days and either pay the debt or agree payment terms then we can initiate a winding up petition.
The statutory demand will often get you paid when the debt collection letter did not. It is not usual to have to initiate a winding up procedure but we have considerable experience in doing this when it is appropriate. You can trust us to draft the winding up petition, collate the witness statements and issue the winding up petition to the Court.
However, before this, we will work with you to determine what is the right next step at each point in the process to increase your likelihood of being paid. In some cases, issuing a winding up petition will get you paid rapidly. However, if the petition is approved and the company is wound up (liquidated) then it is highly unlikely that you will get your money.
This is why we have a strong negotiation team within our disputes resolution department. The simplicity is that you want to get paid and your debtor almost certainly wants to stay in business. Else solicitors can negotiate a winding up petition settlement which satisfies both parties. There is a gap of around 8-10 weeks between the winding up petition being issued and the hearing in Court which gives us the opportunity to negotiate a deal.