If you want to start proceedings against a company that owes you money, the most serious action you can take is to issue a winding up petition. If the debt remains unpaid and the petition is filed correctly and for the right reasons, it is possible that the court will force the company into compulsory liquidation.
However, you can only issue a winding up petition against a company if no other creditor has already filed a petition against them. If they have, your only option is to join the petition as a supporting creditor.
Joining the petition
If you choose to join a winding up petition as a supporting creditor, you should gather all the evidence you have. This includes invoices, collection letters, letters of demand, phone call logs and any other documentation you have that proves the existence of the debt.
The next step is to contact the petitioning creditor to ask to join the winding up petition and be recorded as a supporting creditor. If you do not know the details of the petitioner creditor, it is possible to find their details in the public records of court filings or the advertisement of the petition in The Gazette. You should then sign and return any documents you receive from the petitioning creditor.
As a supporting creditor, you are entitled to attend the winding up hearing and make representations to the court. It is important to note that joining a winding up petition is no guarantee that the debt will be recovered. There is a strict repayment hierarchy in liquidations and unsecured creditors will only be repaid once secured and preferential creditors have received the money they are owed.
Issuing a winding up petition is a serious step to take and you should receive professional advice before doing so. Simply call Simon Renshaw on 0208 444 2000 for a free, no-obligation discussion.