How to stop Winding Up

Take action early

If your company has been threatened with or received a winding up order, the first option is to pay the outstanding debt or agree with the creditor to pay over time.

If the outstanding debt cannot be paid, there are various company debt solutions to consider to save your business.

Use the Solution Calculator to get a FREE REPORT

Note: Pre-pack administration cannot be used to rescue a limited company if a winding up petition has already been issued.

If you have received, or have been threatened with a winding up petition, call us now to save your company

Solution Calculator

Find out how by answering a few
simple questions starting below:

1) Do you have cashflow problems?

Solutions to stop Winding Up

Pre pack Administration

Legacy debt written off
Creditor action stopped

Company Voluntary Arrangement

No additional investment
No directors disqualification report

Voluntary Liquidation

No significant upfront investment required
Cash freed to run new business

Administration

Creditor action stopped
Business can be restructured

Act on receipt of a Statutory Demand

Any creditor wishing to pursue winding up must first issue a statutory demand for payment. Once your company receives a statutory demand, you have 21 days to either pay the debt in full, reach an agreement to pay in stages or challenge the action.

If you wish to challenge the demand, you should do this with the help of a solicitor.

If after 21 days no agreement has been reached, the creditor can apply to the High Court in London for a winding up petition.

If you receive a winding up petition you must take expert advice immediately. It is likely that your bank account will be frozen and if you do not act, your company may be closed

Implement a business rescue solution

If a winding up petition is granted by the court, the Company has 7 days to come to an agreement with the petitioning creditor. If this cannot be achieved, then the petition will be advertised in the London Gazette.

Once advertised, the winding up process has legally begun.

The company's bank account will be frozen which makes it extremely difficult to continue trading.

At this stage, it may still be possible to rescue the company by implementing a CVA or applying for Administration. If either of these solutions is put in place, all legal action against the company from its creditors including winding up procedures will be stopped.

You need to act very quickly. Call us now for further advice

Challenge at the winding up hearing

After being advertised, a date for a winding up hearing at the court is set. At this hearing, the court will decide whether the company should be closed or not. The hearing in the high court will take place even if the debt is paid or an arrangement for payment is made before hand.

If you wish to challenge the closure, you must attend this hearing to argue the case on behalf of your company. You will require legal representation.

If the winding up of the company is not successfully challenged, then the court will appoint a liquidator and the company will be closed.

Call us now for further help and support