A winding up petition is a formal document issued by the Court against a Limited company or a Limited Liability Partnership.
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, 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.
Once you go to Court you can either:
- Ask for the company to be wound up
- Request an adjournment to allow more time to resolve your issues
- Withdraw the petition (e.g. you have reached an agreement)
Negotiation is a better option than liquidating the company and losing any chance of your payment.
If it does proceed to Court then there is the petition court fee and are costs to consider. In a significant number of cases where we issue a winding up petition, we recover your original debt plus late payment interest and the legal costs in full so it costs you nothing.
But what happens if a winding up petition is brought against your business? Most winding up petitions are brought by HMRC against businesses who cannot pay their PAYE, VAT or corporation tax.
This can be a frightening prospect for any business. Our advice is don’t give up. Our experienced negotiators will fight your corner and take the stress out of your situation. Our dispute resolution team has a proven track record of negotiating mutually agreeable deals with HMRC.
What We Do Best
Else is a modern, dynamic and forward thinking team of solicitors. We have the expertise you expect from a large, traditional law firm. Our firm has considerable experience in issuing statutory demands and winding-up petitions.
Experience the Else difference today!