No one wants to shine a light into that deep, dark corner that is Compulsory Liquidation, but what do you do if you receive a Winding Up Petition?
Foremost, keep your head. Act within 7 days and you can stop the Winding Up Petition from being advertised in the London Gazette. Secondly and importantly, before and after this period a licensed Insolvency Practitioner needs to help you.
Solvency savvy, they know their game and can advise on the most suitable way for you to stop the Winding Up Petition. Some ways lead to business rescue & recovery and others to an orderly wind down of company affairs.
5 Ways To Stop A Winding Up Petition:
1. Repay the debt and the Creditors costs.
2. Agree a Time To Pay plan with the Creditor:
- A HMRC Time To Pay plan.
- A Company Voluntary Arrangement plan (an adjournment may need to be sought whilst the CVA is agreed).
3. Dispute the Winding Up Petition (having first applied for an injunction to prevent the advertisement of the Winding Up Petition in the London Gazette).
4. Go into Administration whilst re-structuring is organised.
5. A Creditors Voluntary Liquidation.
Lastly, a pre-insolvency moratorium is perfect for resolving pre-insolvency situations where a company has received a winding-up petition and needs a ‘breathing space’ so that it can collect book debts, or secure investment (either from shareholders or funding).
Most likely you will never be faced with that deep, dark corner of Compulsory Liquidation, yet if you are - you now know how to switch on the light, banish the shadows and start to deal with it.
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