Act with speed with wind-up petition lands

A winding up petition represents the most serious threat to the future of your company and if nothing is done, it will result in the company being closed.

If your company receives a petition, you need to act fast.

Following a petition being lodged at court, a notice will be placed in ‘The Gazette’ which is monitored by creditors who will be alerted to act.

The bank will freeze your company’s accounts which will stop trade. This can happen as soon as seven days after the petition has been served.

If you cannot repay the petition debt and the core business is viable, there are options to prevent your company from going through this process if you act fast:

1. Dispute the debt.
If there is a legitimate dispute and your company can provide clear evidence to this effect, then the debt can be disputed at court.
2. Restructure the business.
You can apply for administration through the courts if you can demonstrate that the business of the company can be rescued, or it provides a better outcome for creditors than winding up.
3. Implement a Company Voluntary Arrangement.
Negotiate a formal agreement with creditors and create an affordable repayment plan for your company’s debts.
4. Creditors’ Voluntary Liquidation.
With the permission of the petitioning creditor, you could look to go through a voluntary liquidation process allowing you to nominate your own insolvency practitioner.

Speaking to insolvency practitioners might seem daunting, but at Simply Corporate we offer empathetic, practical solutions tailored to recovery.

Acting sooner increases the chances of overcoming financial difficulties and securing long-term stability.