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What are Winding Up Petitions?

A winding up petition is a formal legal demand made by a creditor against a company to request the court to force the compulsory liquidation of the company.

It is a serious step taken by a creditor when the company owes them a significant amount of money, and all attempts to recover the debt have been unsuccessful.

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Dealing with Winding Up Petitions and common scenarios that lead to them

Try Not To Panic

It’s understandable to feel stressed or anxious upon receiving a winding up petition. However, panicking is generally not helpful and can even hinder your ability to address the situation effectively.

Seek Professional Advice

Speak to us! We are experienced in dealing with winding up petitions and will provide guidance on the best course of action to take.

Unpaid Debts

The most common reason. You haven’t paid your debts when they fall due and consistently fail to meet financial obligations.

Inability To Pay Debts

The inability to pay debts is a clear sign of insolvency.

Lack Of Communication

Creditors may resort to winding up petitions if you fail to respond to their communications or take their debt seriously.

Long Overdue Debts

A creditor has been attempting to recover a debt for an extended period of time.

Winding up petitions are a serious legal action taken by creditors against a company, it’s imperative to seek immediate advice in order to recover your business.

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Yes – HMRC can absolutely chase a dissolved company. They have six years from the date of dissolution and twenty years if they believe and fraud or negligence has taken place.

Yes, you can. However, should your conduct as a director be called into question for the company you were a director of, you could be banned at a later stage.

No it will not. Being the director of a limited company limits the liability to the company. That is providing you have acted as any reasonable person would whilst running the business and not signed up to any personal guarantees or have an overdrawn directors loan account.

Please contact us at your earliest convenience. We can provide guidance on the Company’s ability to repay these amounts over time and assist in negotiating a suitable time-to-pay arrangement with HMRC on your behalf. Acting promptly increases the likelihood of HMRC providing assistance.

Fees vary depending on the level of work that needs to be undertaken and the level of specialism that needs to be given.

Disqualification under the Company Directors Disqualification Act bars former directors from holding director positions in UK-linked limited liability or overseas companies. They are also prohibited from involvement in setting up or managing such entities.

What are Winding Up Petitions?

Dealing with Winding Up Petitions and common scenarios that lead to them

Frequently Asked Questions