December 14, 2018
What is a Winding up petition?
A winding up petition is a request to the court to close down a company [“wind it up”] because it can’t pay its debts. You [“a creditor”] must prove that you are owed at least £750 and the company can’t pay you. The process starts by filling in the correct forms and sending them to the right court with a petition deposit, presently £1,600. What the company does will depend on the state of its finances and whether or not it agrees that it owes you. If your application [“winding up petition”] succeeds the assets of the company are sold, any legal disputes are settled, the company collects the money it is owed and the remaining funds are paid to the creditors. You are one of those creditors. You might get all or some or none of the money you are owed. If your petition fails you will probably be ordered to pay the company’s legal costs.
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By Paul Ashwell | Contracts and Debt Recovery