Winding-up Petitions
What is a Winding-up Petition?
Considered a tool of last resort, a winding-up petition begins the process of liquidating an insolvent company. Once advertised, the company’s bank accounts can be frozen, and transfers will be subject to investigation by the Official Receiver once the company is on notice.
The company is ultimately dissolved, and any available assets distributed to the creditors, prioritising the cost of the winding-up deposit and charges incurred by the liquidators, followed by the secured creditors and finally the pool of unsecured creditors.
What we need from you
The minimum amount for a winding-up petition is £750; we would need the details of the debt, contract or agreement, how it was incurred, details of the amount due and any payments made. The name and address of the company, any correspondence between you and the company.
We also need proof of the underlying debt, such as an unanswered statutory demand or county court judgment.
Timescales & process
Given the implications of winding-up a company, the process requires several steps be undertaken. Upon review of the file and receipt of your instructions to proceed, we look to have the petition issued within 5 working days. This is the initial completion of the Comp 1 and Comp 2 forms that are provided for review before submission to the court. Depending on the share capital of the company, this will either be filed electronically or by hardcopy (which is much slower due to reliance on the postal service).
The petition is sealed, and a hearing is listed at the relevant court. This must then be served on the debtor and advertised no less than 7 working days after service and before the hearing. A copy of this and a Comp 3 form confirming service must then be submitted to the Court 5 working days before the hearing.
A list of attendees, including any supporting creditors, must then be provided to the court on the day before the hearing.
We will arrange attendance at the hearing to seek the necessary order.
