We do things differently to other law firms. We are located in the legal heart of London and are purposefully located just minutes from the major UK Companies Courts in order to provide our clients with urgent representation. Our expert Insolvency solicitors and barristers are located in Middle Temple Chambers opposite the Royal Courts of Justice and just 5 minutes walking time away from the Insolvency and Companies Court in the Rolls Building.
What is a winding up petition?
A winding up petition is a legal notice filed a court by a creditor. The creditor but be owed more than £750 which has not been paid for more than 21 days. The purpose of the petition is to ask the court to liquidate the company, if the company is liquidated the proceeds will be used to repay creditors.
Generally, around 60% of all winding-up petitions are issued by His Majesty’s Revenue and Customs (HMRC). HMRC petitions therefore generally represent 60% of all petitions. We are extremely experienced in dealing with HMRC petitions including obtaining adjournments and time to pay for directors.
Who attends the winding up petition hearing?
The petitioner, creditors, anyone with an interest in the company’s property, the company and its’ shareholders all have the right to attend the hearing and be heard at the hearing.
Where do winding up hearings take place?
In London, winding up petitions are heard at the High Court of Justice, Business and Property Courts of England and Wales, in the Insolvency and Companies Lists. Hearings usually take place on Wednesdays from 10:30am in the Rolls Building, Fetter Lane, London, EC4A 1NL.
We are located 5 minutes walk from the Court and are therefore able to provide urgent representation. However, this is subject to capacity and receiving instructions in a timely manner.
How long does it take to issue a winding up petition?
A petition can be presented to the Court and issued relatively quickly however it is vital to ensure that the debt is liquidated and for a legal representative to review all correspondence and papers surrounding the debt and take any pre-action steps that are advised by the solicitor.
Generally it will take up to 28 days for a winding up petition to come into existence however it is possible to act much more quickly (upon considered legal advice).
Once the debtor has received the petition it is advised they act quickly in order to save the company. If you have received a petition there is a seven day time limit to take action for example to restrain advertisement by agreement or injunction if the debt is disputed and apply to seek dismissal of the petition.
What action can be taken to oppose a winding up petition?
The debtor is able to take one of the following steps within seven days of the receipt of the petition:
- Pay all monies due to the creditor.
- Propose a Company Voluntary Arrangement (CVA). This is a insolvency procedure which provides up to five years of extended payment time.
- Place the company into administration.
- Raise a genuine and substantial dispute and seek injunctive relief to stay advertisement and seek dismissal.
What is the role of a Liquidator in winding up petitions?
If the court winds up the company, the role of a liquidator is to collect and distribute the company assets in accordance with Insolvency Act 1986. Liquidators are officers of the court and have special powers which enable them to fulfil their role.
Another aspect of their role is to remove the company from legal relationships. Liquidators ensure that all contracts are completed, transferred or brought to an end and that all liabilities are accounted for and legal disputes settled. They may seek to bring legal action against directors for overdrawn directors loan accounts or other financial wrongs.
Is liquidation the same as winding up?
Winding up evolves the conclusion of all business affairs and includes the closure of the company which includes liquidation or dissolution. Liquidation, however, is specifically regarding the selling of company assets in order to pay creditors.
Why should you instruct a specialist insolvency lawyer at the winding up petition hearing?
The rules surrounding insolvency are technical and it is unlikely that a someone not versed in personal insolvency laws will achieve a successful outcome. Winding up particularly and insolvency is a niche practice area – indeed many solicitors in general practice will rarely have experience in this discipline.
Do not underestimate the severe consequences that winding up a company entails. It is likely that seeking the advice of a specialist insolvency lawyer will be of far more benefit to you than ignoring impending proceedings or seeking to conduct the litigation yourself as a layman.
How can we help you?
Our team is made of highly experienced and tough negotiators that will fight to get the best results for our clients. We have years of experience of negotiating with creditors and debtors alike from large multi-million pound cases to smaller matters with equally large consequences for the person involved.
How can we represent you at Winding up Petition Hearings?
Although we are based in the legal heart of London, operating as the only law firm in the historic Middle Temple Chambers, we provide comprehensive nationwide coverage to represent you at any winding up petition hearing. Our team of solicitors and barristers will prepare grounds of opposition and a witness statement for you.
We will represent you at the winding up petition hearing and will provide our own barristers or external local counsel to any hearing across the country.
Not based in London? We provide nationwide representation
That does not matter, we will represent you no matter where you are based in England or Wales.
If you contact us through our contact form, by email or by phone, one of our winding up petition team members will contact you by phone to discuss your matter and assess whether we can help you.
If we can, we will arrange a conference with a senior member of our winding up petition team. This meeting will take place either in person or using our telephone / video conference facilities if you prefer. Therefore, no matter where you are based in England or Wales we can represent you.
Instruct Specialist City of London Winding Up Petition Lawyers
Please call us; we can quickly establish whether or not we can help you. 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.
LIMITATION ACT 1980 – WARNING
The Limitation Act 1980 sets out strict statutory deadlines within which you must bring litigation claims. Your legal rights will become irreversibly time-barred if you fail to take legal action (or defend a claim on time). Therefore, you should seek specific legal advice about your legal dispute at the very first opportunity so that you understand the time you have left. Failure to take advice or delay in taking action can be fatal to your prospects of success.
Please note that for regulatory reasons we do not offer any free advice.