How to stop a winding up petition

How much does it cost to stop a winding up petition? How to prevent a winding up petition becoming a winding up order? If you don’t stop a winding - up petition , ultimately it could mean the collapse of the business and a cease in trading.

A petition leads to a court hearing, can result in a winding - up order, effectively putting your company into compulsory liquidation. However, the method you use to stop a winding up petition depends on where you are in these proceedings.

We’ll outline them here: When you suspect that a creditor is planning to file a winding up. The to the question how to stop a winding up petition are as follows: Pay the debt due. If the winding up order debt is undispute then the simplest way is to pay the winding up petition debt following which, the winding up petition can be dismissed. The debtor might have to sort out the legal costs of the winding up petition but this. Stop liquidation by adjourning the winding up petition.

Compulsory liquidation begins when a winding up order is granted by the courts, so the time available in which to take action is very restricted. Seeking a short adjournment provides the breathing space needed to assess the situation. The current fee to stop a winding up petition is £155.

That is providing you go to one of the district registries or the Companies Court. But, the fees vary at some county courts. Thus, check with the court before applying. You might be able to get the fees back if the company can afford to repay them.

Winding Up Hearing Procedure. Scottish companies. There are different rules on winding. You have time to prevent a winding up petition becoming a winding up order. If the company owes £7or more, the creditor can issue a petition in court.

The petition is usually presented to the court by a creditor (or their solicitors). If you have received a winding - up petition , it should not be ignored. It represents a serious commitment by a creditor to get what they’re owed or put your company out of business. Once a winding - up petition has been issued against your company, there are tight timescales within which you need to act to avoid your company being wound up.

We discuss the process and effects of winding - up petitions in detail on other pages, but to avoid adverse consequences such as restrictions on trade, frozen bank accounts, reputational loss, staffing issues, or lease terminations, we. A winding - up petition can be stoppe if it is acted on quickly. If you fail to stop a winding up petition , it could eventually lead to your company collapsing and prevent it from trading.

If successful, it will result in the compulsory liquidation of the indebted. If you fail to prevent a winding - up petition , it could eventually lead to your business collapsing and also prevent your business from trading. It is most commonly used by creditors owed more than £75 but it can be used by shareholders or directors although this is less common.

In order to stop a winding up petition taking effect once it has been issued then you need to act quickly to save your business! What is winding up ? The court, which has the power to grant the winding up order, also has the power to grant an adjournment of the hearing at which the petition is presented. An adjournment may be granted if the court can be persuaded that the company needs more time to come up with.

You must deliver (‘serve’) a copy of the application to the person who made the winding up petition (the respondent) and the official receiver. You can deliver the application by: giving it to.