Post-COVID: Restrictions on Winding-up Petitions Lifted

The pandemic saw numerous restrictions being imposed on winding-up petitions. These restrictions were lifted on the 1st of April 2022. If you are a creditor who has been unable to recover outstanding debts throughout the pandemic, our team of specialist debt recovery solicitors and barristers can assist you in making the most out of these recent changes.

Restrictions on Winding-Up Petitions

During the pandemic, certain restrictions were put into place that made it harder for a creditor to issue a winding-up petition. This included an increase in the debt threshold required to bring a winding-up petition- from £750 to £10,000- as well as an additional requirement to provide a debtor with notice twenty-one days before the petition was presented.

Whilst these restrictions were introduced to ensure that small businesses did not bear the brunt of the instability the pandemic brought, the easing of conditions has meant that that winding-up petitions are now back to normal.

Debt Recovery: No More Restrictions

The changes restore parity. As of the 1st of April 2022, the initial debt threshold of £750 threshold has been brought back. The twenty-one day notice period requirement has also been done away with.

These measures will now allow creditors to approach the courts in a bit to recover monies owed to them. This is the case even if the sum you are owed is not exceptionally large. The removal of the notice requirement also allows you to preserve an element of surprise in any proceedings you choose to initiate. These policy changes are a welcome return for creditors who have been unable to recover debt owed to them.

Our highly-qualified team of debt recovery barristers and solicitors ensure that the transition to normality is a smooth one. To date, we have a 100% success rate and all of the petitions we have issued have been resolved in our client’s favour. This has also meant that the petitioned company or individual has paid our fees. Luckily for our clients, this means instructing us to pursue their bad debts has ultimately recovered the sums owed plus interest with a refund of their legal costs.

Instruct Specialist Debt Recovery Lawyers

We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inns of Court adjacent to the Royal Courts of Justice.  We are experts in dealing with matters surrounding insolvency in particular issues.  Our team have unparalleled experience at serving statutory demands, negotiating with debtors/creditors, setting aside statutory demands and both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.


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