An increasing number of directors are finding it difficult to keep their businesses afloat in this uncertain economic climate. This has also led to an increase in household debt which has touched a large number of individuals nationally.
Winding up Petition Advice
Having a winding up order issued against your company is very serious, and should be avoided wherever possible. However, if you do find yourself in the position where a winding up order has been issued to a company of which you are a director, it’s likely that you’ll have questions about what happens next and what it means for you as a director.
If you are struggling to pay your creditors in a timely manner, you may be presented with a Winding Up Petition. This is the most serious action that HM Revenue & Customs or another creditor can take against your company in order to settle a debt and will certainly be an action of last resort to procure payment. A creditor is able to present a winding up petition if there is a debt of more than £750 outstanding to them.
If your company has received a winding up petition from a creditor or HMRC, a court hearing date will be set to hear the petition. At the hearing, the judge will consider whether the debt is actually due and establish whether the company can pay. If the company is proved to be insolvent, then a winding up order will be made and the company will automatically be placed into Compulsory Liquidation.