Winding-Up Petitions Solicitors in London, Birmingham and Northampton

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Our winding-up petition solicitors have been advising clients across the UK and overseas since 2014, giving us the expertise to offer efficient, actionable advice when your business is facing financial difficulties. Our team of experienced litigation solicitors have a proven track record of resolving corporate insolvency disputes in court, as well as via alternative dispute resolution (ADR) techniques, such as negotiation and mediation.

Dealing with large debts and corporate insolvency is a challenging time both for debtors and creditors. To offer the best legal support when you are dealing with winding-up proceedings, we avoid legal jargon as much as possible to give you clarity, enabling you to confidently make decisions about your case. With more than 100 years of combined experience amongst us, you have a trusted legal advisor on your side.

If you need advice regarding the winding up petition procedure, contact our corporate insolvency solicitors in London, Birmingham and Northampton on info@witansolicitors.co.uk. All our clients are entitled to an initial, free, no-obligation consultation.

What is a Winding Up Petition?

The winding-up petition is a legal course of action taken by creditors who are looking to force a company or a partnership into compulsory liquidation to recover unpaid debt. If a winding-up petition is granted by the Court, the business will be required to cease trading, its accounts will be frozen and its assets will be distributed by an insolvency practitioner amongst its creditors. 

To use a winding-up petition as a debt recovery action, the value of the unpaid debt must be at least £750 and it must not currently be subject to a legal dispute. When the winding-up petition concerns a partnership, each partner is likely to also receive an individual bankruptcy petition.

For advice on whether bringing a winding-up petition is the best course of action in your case, or if you need to defend yourself against a winding-up petition, our specialist corporate insolvency team can offer tailored advice on how to proceed. 

The Winding Up Petition Procedure

Winding-up petitions are applicable to debts of over £750 and are usually deployed by the HMRC. Winding-up petition hearings take place at the High Court or a County Court.

Once a winding-up petition is issued, it is served to the debtor in person at the registered office of the business. If there is no one who can receive the petition at the address, it can be deposited at the address (e.g. attached to a fixture).

Seven days after the petition is served, the creditor can have it advertised in the London Gazette, which can lead to the company’s accounts being frozen and all trading being ceased. This advertisement can only be prevented by obtaining an injunction from the court.

Once a winding-up petition has been served, the subject of the petition should seek legal advice immediately to take action against the petition, secure representation at winding-up petition hearings and negotiate any debt settlements before the company has been forced to cease trading. 

How We Can Help 

With Witan Solicitors by your side, you are sure to obtain the optimal outcome in a difficult situation. We offer first-class legal advice specific to your circumstances, based on more than a century of professional experience. Our services include:

• Tailored Legal Advice – Our team of winding-up petitions solicitors and barristers provide advice to directors, companies and partnerships, guiding them through the complex winding-up petition procedure to offer the best solutions in each case
• Winding-Up Petition Search – Before starting the winding-up petition process against a company, we can investigate whether any other insolvency-related petitions have already been filed to save you time and money, as any existing petitions will take priority 
• Negotiation – We act as negotiators between the company in debt, its creditors and the petitioner (usually, HMRC) to secure the best possible outcome outside of the Court
• Obtaining Adjournments – We also represent businesses in Court to obtain adjournments giving them time to prepare their defence and fight the winding-up petition or engage in negotiations
• Injunction Against Winding Up Petitions Being Advertised – Seven days after a winding-up petition is issued, this can be advertised in the London Gazette. Our winding-up petition solicitors can take action to obtain an injunction and prevent the advertisement from being published
• Validation Orders – If your company’s bank accounts have been frozen as part of insolvency proceedings (section 127 of the Insolvency Act 1986), our team can apply for a validation order to the Court to unfreeze them
• Winding-up Petition Hearing Representation – We represent our clients at winding-up petition hearings to ensure that their best interests are protected 

Why Choose Witan Solicitors?

• 100+ Years of Combined Experience: With more than a century of corporate law experience between us we are your reliable legal partner
• Established in 2014: We have been working with business clients in the UK and overseas since 2014
• Legal 500 Recognised: Our Solicitors have been recognised in the Legal 500
• Industry Experts: We are dedicated to self-improvement and we are constantly on the lookout for changes and precedents in the law
• Multilingual Support: Offering legal advice in more than 10 languages, our multilingual team regularly works with international clients
• Winding-up petition experts near you: Our winding-up petition solicitors are based in London, Birmingham and Northampton

All our clients are entitled to an initial consultation, free of charge. This initial meeting gives you the opportunity to discuss your case with one of our winding-up petition solicitors to see how we can help and decide if Witan Solicitors is the right fit for you. If after our initial talk, you don’t wish to continue working with us, you are under no obligation to do so. Speak to our team today.

FAQ

What is a winding-up petition?

If a creditor is owed more than £750 by an insolvent company, they can take legal action to force their debtor into liquidation to offset the debt. The Court will then schedule a winding-up petition hearing to decide whether the company is insolvent and whether it would be in the best interest of all creditors to have the company wound up so its assets can be used for debt repayment.    

What happens if a winding-up order is issued?

If a winding-up order is made against a company, the petitioner becomes its liquidator and takes control of its assets. The company is forced to stop trading and go into liquidation (this must be reflected in all company documentation). All employment contracts are terminated and all directors lose their powers. In short, a winding-up petition order puts an end to the company. 

What is a validation order?

If a company that is the subject of a winding-up order wishes to continue to trade, it must obtain a Validation Order which authorises trading that benefits its creditors. 

What is a malicious winding-up petition?

If the motive for bringing the petition in the first place is wrongful (without reasonable or probable cause), the winding-up petition is considered malicious. If you have been the subject of a malicious winding-up petition, you can take legal action against the petitioner.

What are the grounds for challenging a winding-up petition?

A company can challenge a winding-up petition on the grounds that:

• There is a genuine dispute regarding the debt the petition is about 
• A mutual debt exists and the company has a genuine right of set-off against the petitioner
• Exceptional circumstances (e.g. where multiple jurisdictions are concerned, where a technical error has occurred, etc)

How can I get an adjournment of a winding-up petition?

The first step is to send a formal letter to the petitioner (often this is the HMRC) to request an adjournment. This is usually done by a solicitor. If your request is denied, you can apply to the Court to hold an adjournment hearing. 

What legal action can I take to recover unpaid debt?

Some of the legal solutions available to you include:

• Statutory demand
• Winding-up petition
• Bankruptcy or insolvency petition 
• High-value debt recovery services 
• Litigation 

What should I do if I am served a Statutory Demand I deem inappropriate?

You can apply to the Court to set aside a statutory demand within 18 days of receiving it. If the Court deems it inappropriate, the demand can be set aside.