Winding up petition london companies court uk

Winding-up Petition Lawyers

LEXLAW Solicitors & Barristers offer expert defence, advice, and representation for those facing winding up petitions in England & Wales, specialising in Company or Partnership insolvency issues. They deliver urgent legal services from their London base near the Companies Court, and strive to protect clients’ financial and personal interests through tailored strategies, court advocacy, creditor negotiations, and company rescue advice.

We have the perfect skill set with which to provide those facing winding up petitions the best insolvency defence, advice and advocacy representation before any Court in England & Wales. We will help ensure you emerge from the liquidation process as personally and financially intact as possible.

“A highly regarded and effective firm for winding up petition defence in the UK, with a strong track record of success and positive client feedback.”

Key points about LEXLAW and our successes:

  1. Expertise: They specialise in insolvency law and winding up petitions, with a team of experienced solicitors and barristers.
  2. Rapid response: LEXLAW has demonstrated the ability to act quickly in urgent situations, such as obtaining a validation order within 3 days of meeting a client.
  3. High success rate: Around 97% of their litigation cases settle before trial.
  4. Positive client feedback: Multiple client testimonials praise LEXLAW’s expertise, professionalism, and ability to achieve favourable outcomes.
  5. Successful case studies:
    • Obtained dismissal of a winding up petition, allowing a company to continue trading.
    • Successfully defended against an HMRC winding up petition with only one week’s notice.
    • Secured a validation order within 48 hours of issuing an application, which is described as “extremely rare”.
  6. Comprehensive service: They offer support throughout the entire process, from preparing and presenting petitions to court representation and negotiation with creditors.
  7. Unique positioning: LEXLAW operates from professional legal chambers in Middle Temple, near the Royal Courts of Justice and High Court in London.

We assess your case potential and provide expert legal advice. Get a clear path forward at our fixed-fee consultation. For optimal results click Check My Case below or call ☎ 02071830529

What is a Winding Up Petition?

A winding up petition is a legal action taken by a creditor to force a company into compulsory liquidation due to unpaid debts. If granted, the company’s assets are sold to pay creditors, and the company ceases to exist as a legal entity.

Presenting a winding up petition to the Court is the most serious debt recovery action that can be taken by a creditor. It requires the petitioner to be able to demonstrate that it has a liquidated debt of at least £750 which is not in dispute, this is normally evidenced by a statutory demand which is not set aside or a Judgment of the Court. Winding up petitions may be issued at Court against either a Company or a Partnership, the latter (a petition to wind up a partnership) is usually accompanied by individual bankruptcy petitions for each of the partners. The winding up petition is the precursor to the compulsory liquidation of a company or the dissolution of a partnership if not properly dealt with by the Directors or Partners and in essence means that a creditor is asking the Court to wind up a business and have an insolvency practitioner distribute the assets of that business amongst all creditors.

What should I do if my company is served with a winding up petition?

You must act quickly, as you have only seven days to respond before the petition is advertised in The Gazette and your company bank accounts become frozen. Options include:

Ignoring the petition can lead to:

  • The court granting a winding up order.
  • Freezing of your company’s bank accounts.
  • Appointment of a liquidator who will sell company assets and investigate director conduct for potential misconduct or wrongful trading.

Seeking legal advice from an insolvency specialist firm of solicitors and barrister that specialise in defending winding-up petitions is strongly recommended. We know what the best next steps are and can often completely reverse the position if the other side have made errors.

Winding Up Petition Procedure

Winding up petitions can be issued by any creditor who is owed at least £750 and are most often deployed by Her Majesty’s Revenue & Customs (HMRC). Petitions are in the main issued and then heard at the High Court of Justice, Chancery Division (Companies Court) which is based at the Royal Courts of Justice (Rolls Building) in London. They can also be issued and dealt with at other High Court District Registries or at a County Court with jurisdiction in insolvency matters (if the paid up or credited share capital is below £120,000). LEXLAW Solicitors & Barristers have professional legal chambers in the Middle Temple Inn of Court which is adjacent to the Royal Courts of Justice where the Companies Court is located. This location in the legal heart of London ensures we are able to take urgent instructions and act quickly on behalf of the firm’s clients.

Once a winding up petition is issued by a creditor such as HMRC it is then served on the company usually by a process server visiting the company’s registered office address or sometimes by first class post. Once a petition is served there is very limited time for Directors to act decisively and deal with a company’s debts and the company will urgently need specialist legal advice (and representation at the Companies Court hearing) to help it fight back and ensure the business stays alive. As specialist winding up lawyers, we can help the company to get enough time to manage or settle large debts or to dispute the monies claimed in the petition. With the correct legal guidance it is perfectly possible to obtain time and resolve the debt even if the creditor won’t initially agree to sensible time to pay proposals; there are legal arguments and applications that can be deployed in the company’s favour.

For Creditors Considering Issuing a Winding Up Petition

Creditors owed £750 or more can issue a winding up petition if they can prove the company is insolvent and unable to pay its debts. Other eligible parties include directors, shareholders (contributories), and certain officials like the Secretary of State.

What is required to issue a winding up petition?

    This is not a simple process and one mistake can jeopardise the entire petition. Costs are recoverable from the other side in event of success in any event. Steps to take are:

    • Complete Form 4.02 (petition) and Form 4.03 (affidavit).
    • Pay court fees and deposits.
    • Serve the sealed petition on the company at its registered office or main place of business.

    How much does it cost to issue a winding up petition?

    Costs include court fees and deposits payable to HM Courts and Tribunals Service. These costs may be recoverable if the company repays its debts. For more information see here: https://windinguppetitionsolicitors.co.uk/funding

    Performing a Winding Up Petition Search

    Prior to issuing a winding up petition, you must ensure that you check with the Companies Court as to whether another petition already has already been presented. The first petition is the one that takes precedence (whether advertised or not) and any subsequent petition is likely to be dismissed with an adverse costs order against the petitioner. We can conduct a winding up petition search for our clients who are intending to issue a petition via the Court which will confirm if any liquidation, winding up or striking-off documents have been filed. We will also confirm if any notices have been placed in the London Gazette. If adverse entries are filed, relevant copies will be provided. We can also do winding up searches for clients that are required to wind a company up and need further information, namely: Date of Incorporation, Any changes of name, Registered Office, Objects, Nominal & Issued Capital, Copy Mortgage Register.

    What are common grounds for issuing a winding up petition?

    The most common ground is that the company cannot pay its debts as they fall due, often proven through an unpaid statutory demand. This is a clear indication of insolvency, and creditors often use this as the basis for their petition. 

    Establishing valid grounds for issuing a winding up petition is crucial because it demonstrates that the creditor has acted reasonably and followed due process in attempting to recover their debt. Courts will not grant a winding up order unless there is clear and compelling evidence that the company is insolvent and unable to pay its debts. Therefore, creditors should ensure they have sufficient documentation (e.g., statutory demands, court judgments, correspondence) and should take legal advice before issuing a petition.

    1. Failure to Comply with a Statutory Demand:

    A statutory demand is a formal written request for payment of a debt exceeding £750. If the company fails to pay, secure, or dispute the debt within 21 days of receiving the statutory demand, it is considered evidence of insolvency. Creditors often use this as a precursor to filing a winding up petition.

    2. Unpaid Court Judgment:

    If a creditor has already obtained a County Court Judgment (CCJ) or High Court Judgment against the company for an unpaid debt and the company still fails to settle it, this can serve as evidence that the company is unable to pay its debts.

    3. Evidence of Insolvency:

    Beyond statutory demands or court judgments, creditors can present other evidence of insolvency, such as:

    • Repeated bounced cheques or returned direct debits.
    • Admission by the company that it cannot pay its debts (e.g., through correspondence).
    • The company’s inability to meet other financial obligations, such as unpaid taxes, wages, or supplier invoices.

    4. Breach of Payment Agreements

    If a company has entered into a repayment plan or agreed on terms with creditors but fails to honour those agreements, this may also be considered evidence that the company is insolvent and unable to manage its financial obligations.

    5. Creditor’s Reasonable Belief of Insolvency

    In some cases, creditors may file a winding up petition if they have reasonable grounds to believe that the company is insolvent based on its financial behaviour or public records (e.g., overdue filings at Companies House, failure to submit accounts, or reports indicating financial distress).

    6. Tax Debts Owed to HMRC

    HM Revenue & Customs (HMRC) is one of the most frequent petitioners in winding up cases. If a company fails to pay VAT, PAYE, Corporation Tax, or other tax liabilities, HMRC may issue a winding up petition as part of its debt recovery process. We are the leading law firm in the UK in defending HMRC Petitions with a track record of success.

      How long does the petition process take?

      The winding up petition process typically takes 8-10 weeks from filing the petition to the first court hearing. This timeline includes several key steps: filing the petition, serving it on the company, and advertising it in The Gazette. The petition must be served on the company as soon as possible after filing, and it cannot be advertised until seven business days after service. This window gives the company a chance to settle the debt or dispute the petition before it becomes public.

      If uncontested, at the first hearing the court may grant a winding up order at the hearing. However, if the case is complex or if more time is reasonable, the court may issue directions or adjourn the hearing. Getting expert legal advice at the outset is the best way forward.

      What are potential risks for creditors issuing a petition?

      If a winding up petition is unsuccessful, the creditor may face significant financial and legal consequences. Filing a petition involves court fees, deposits, and legal costs, which can be substantial. If the court rejects the petition or if the debtor company successfully disputes it, these costs are unlikely to be recoverable and the petitioner may have to pay the company’s legal costs possibly on the indemnity basis; as we achieved against HMRC. Furthermore, pursuing an unsuccessful petition can damage the creditor’s reputation and strain business relationships.

      Given the financial risks and potential complexities involved, it is highly recommended to seek expert legal advice from insolvency expert solicitors and barristers before issuing a winding up petition. For a discounted fixed fee which is potentially recoverable, we can help assess whether this course of action is appropriate, ensure compliance with legal procedures, and advise on suitable alternative debt recovery options that may be more effective or less risky.

      Why use a Specialist Winding Up Petition Solicitor?

      The insolvency and Court rules relating to winding up proceedings are a technical minefield; as expert winding up petition solicitors we help our clients to avoid suffering the ‘usual compulsory order’. We assist by protecting the companies interests and by negotiating with creditors and advising and representing the company at Court.

      Retaining insolvency solicitors and barristers in particular assists in dealings with creditors (such as HMRC) who will know a company is taking matters seriously and responsibly when they instruct ourselves.

      Our Winding Up Solicitors get the best results

      We endeavour to make the process as stress-free as possible for our clients and seek to eliminate the possibility of business failure. We consider that each client’s case and business is unique, therefore we adopt a bespoke approach tailored to suit individual circumstances. We provide specialist senior legal advice from solicitors and barristers at the outset when it absolutely matters in choosing the best strategy to follow. We are regularly instructed by regional solicitors’ firms to give specialist advice on legal strategy and costs as well as to manage winding up proceedings [email protected] agents and as advocates in the High Court. We assist our clients by:

      Company rescue and turnaround advice

      We add value by our legal services by guiding clients as to how best companies can be rescued and turned around and how debts can be written off or restructured. We can advise on administration or proposals of either Company Voluntary Arrangements (CVAs) or Partnership and Individual Voluntary Arrangements (PVAs or IVAs). To achieve a company rescue you must act quickly; contact us as soon as possible. The more time available to build an alternative business plan, the more successful it is likely to be. If your company can be saved, whether this is achievable through restructuring or writing off debts, the team at LEXLAW Solicitors & Barristers can help by offering clear, practical and easy to understand advice which deciphers the Insolvency Rules and regime.

      Initial consultation and advice

      Our team is made up of fully qualified legal professionals such as winding up solicitors and winding up barristers and we are regularly instructed by other law firms to assist their clients facing winding up proceedings. You can be assured that your insolvency matter is in safe hands and that we will act cost effectively and in the best interests of the Company and the Directors. Our success rate is a result of the dedication of our insolvency lawyers who will diligently review your matter to ensure it has the best possible chance of success from the outset when it matters the most.

      To contact us about your case please call us on: 0207 1830 529 or email us on: insolvency-winding [email protected]

      Optimal Legal Results.

      Our litigators deliver advanced legal strategies.

      We analyse and work out the legal merits of running your case to trial. We calculate and advise on legal risk factors and the litigation rules in England & Wales. We factor in your risk-appetite, costs sensitivity and determination. Together, we plan the best possible result.

      You’ll receive strategic legal advice from a barrister and solicitor at your first fixed fee meeting.

      ACT PROMPTLY

      Please note that if you have been warned about your file being passed to HMRC’s Solicitor’s Office or have been served a statutory demand or winding-up petition do not delay in taking legal advice. Your matter can be handled more effectively the sooner you contact us.