When companies receive a Winding-Up Petition it marks the start of a process which if not dealt with swiftly, will ultimately result in the Compulsory Liquidation of the company and sale of its assets.

Seeking professional advice fast is the best way to defend against the petition and maximise the chances of reaching a more favourable outcome

This is the most serious action a creditor can take against your company and matters generally escalate to this extent over a period of time where the creditor is tired of chasing payment.

A Creditor must be owed at least £750 to apply for a Winding-Up Petition.

A Winding-Up Petition will result in a company’s bank account being frozen as soon as the bank becomes aware. This will effectively cause the business to cease trading unless it has sufficient cash to continue.

Additional Creditors will have the opportunity to ‘piggyback’ on the back of the original petition should they also become aware of it

If no action is taken, the hearing of the petition will proceed and the Winding up Order may be made.

If the order is made your Company will enter Compulsory Liquidation.

This will result in the sale of company assets, the closure of the company and an investigation into the conduct of the Directors and Company practices by the Official Receiver.