Insolvency Solicitors & Barristers

Our specialist City of London Insolvency lawyers provide expert legal advice, court representation & advocacy. Call ☎ 02071830529 or via our case assessment form:

Expert Insolvency and Winding-up Petition Lawyers

Are you or your business facing a Statutory Demand or Winding Up Petition?

We are leading experts specialising in insolvency proceedings. Our experienced City of London solicitors and barristers regularly assist companies facing a HMRC winding up petition; individuals served a statutory demand; or creditors owed money and considering issuing a winding up petition

Your search for a solution in relation to debt recovery or to avoid a winding up order ends here. We can guide you through the minefield of complex winding-up rules and procedure and help your company to manage the entire process. We have years of experience in negotiating with debtor companies and their solicitors as well as creditor, shareholder or director petitioners (in particular HMRC).

We regularly represent our client companies in the High Court/Companies Court and successfully obtain adjournments (i.e. to allow time to negotiate and settle or to defend a winding up petition). We also help companies to avoid having bank accounts frozen by preventing the advertisement of winding up petition notices or (if already advertised in the London Gazette) by obtaining a validation order from the Court to unfreeze the company’s bank accounts

We have a proven track record of delivering legal advice and legal solutions. We know exactly how to get the best results for your business

Insolvency

17,439

Company insolvencies (2018)

Winding up

3,117

Winding up orders (2018)

Petition cost

£1,600

Winding up petition fee

Debt

£750

Debt owed for petition presentation

Reasons to instruct us

LEADING CITY LAWYERS
LEADING CITY LAWYERS

Qualified solicitors and barristers with insolvency knowledge & top litigation expertise operating from the only law firm in Middle Temple (Inns of Court).

insolvency specialists

insolvency specialists

Excellent record of setting aside statutory demands, opposing winding up petitions, securing adjournments, obtaining validation orders & debt recovery

authorised & Regulated
authorised & Regulated

Unlike some debt collection agencies or unregulated companies preying on the vulnerable, we give independent legal advice regulated by the SRA and BSB

Our Areas of Expertise

DEBT RECOVERY

Securing payment of unpaid debts for creditors, lenders & local authorities: pre-action collection; Court proceedings; judgment debt enforcement; statutory demands; winding up proceedings

STATUTORY DEMANDS

Set aside/challenge/issue statutory demands; experienced negotiators with debtors/lenders/creditors/agencies

VALIDATION ORDERS

Specialist Validation Order Solicitors in issuing validation order applications for companies; representation at validation order hearings; dealing with creditors (like HMRC)

Do you need an Insolvency Solicitor to bring or defend a Winding-up Petition? Adjournment? Time to pay? Statutory Demand? Validation order? Stopping a petition advertisement?

We are a specialist leading City of London law firm based in the Middle Temple Inns of Court adjacent to the Royal Courts of Justice, High Court and Companies Court.

We have the strongest possible record of success in dealing with numerous bankruptcy or winding up petitions and are regularly recommended to clients by leading accountants and leading insolvency professionals.

We advise company directors on the best course of legal and commercial action for the business (for example restraining advertisements, obtaining validation orders to unfreeze bank accounts, obtaining winding up petition adjournments and time to pay HMRC, defending winding up petitions).

We add value by recommending insolvency routes, where appropriate, such as Voluntary Arrangements (CVAs, PVAs, IVAs), Administration or other insolvency routes).

Download our featured authoritative guide to Compulsory Liquidation & Winding Up Petitions

The Company Director’s Guide on Insolvency


Our Insolvency team regularly provide market leading advice to directors of companies and limited liability partnerships. Our work has featured in KSA Group‘s Worried Directors Guide 2018, including our authoritative guide on compulsory liquidation and winding up petitions.

The Company Director's Guide on Insolvency

Winding Up & Insolvency FAQs

Can I set aside a statutory demand?

Yes, but it is imperative that you act promptly – you have in the first instance only 18 days as of right to apply to the Court for a set aside once you have received a Statutory Demand. Often the use of Statutory Demands is inappropriate and in some cases they can be set aside by the Court.

What does winding up mean?

The process and purpose of winding up can be summarised as a process “to make equable and rateable distribution of all assets of a company … amongst all creditors of the company without favour or preference” (Ince Hall Rolling Mills Company Ltd v Douglas Forge Company).

On what grounds can a company challenge a winding up petition?

  1. The debt alleged in the demand to be owing is genuinely disputed on substantial grounds by the company.
  2. The company has a genuine right of set-off against the creditor which exceeds the amount claimed in the demand.
  3. In certain other limited circumstances (for example such as jurisdiction; company likely to become insolvent; technical or procedural error or delay).

Can I seek an adjournment of a winding up petition?

Yes. The first port of call would be to write to the petitioning creditor (in most cases HMRC) asking for an adjournment- the request would be more persuasive coming from a solicitor (we have liaised with HMRC many times).

If the petitioning creditor refuses then you need to ask the Court at the hearing for an adjournment. We have the necessary experience and legal knowledge of the circumstances in which the Court exercises discretion and can help to get your business an often much needed adjournment.

What is a malicious winding up petition?

A malicious winding-up petition is one that has been presented against a company for an improper or wrongful motive. A company that suffers a malicious petition can bring a Court claim for malicious prosecution against the petitioner.

I am a creditor. How do I recover an unpaid debt?

We are lawyers that specialise in recovering unpaid debts from individuals or companies so we know the best way to get your unpaid debts paid up quickly. This may involve Insolvency or Litigation proceedings.

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.

What is a validation order?

Validation Orders are orders authorising the disposition of property made after the presentation of a winding-up or bankruptcy petition which would otherwise be void in the event of a winding-up or bankruptcy order being made.

A validation order will allow a company to continue to trade or perhaps dispose of a specific asset such as a property on the basis it has been determined these transactions are to the benefit of all creditors.

What are the consequences if a winding up order is made?

If a winding up order is made by the court, this will ordinarily signal the beginning of the end for the company. The following consequences occur automatically on the making of a winding up order against a company:

  • The Official Receiver becomes the liquidator of the company (section 136, 1986 Act).
  • The powers of the company’s directors cease (Measures Brothers Ltd v Measures [1910] 2 Ch 248).
  • The liquidator takes control of the company’s assets (section 144(1), 1986 Act).
  • Any disposition of the company’s property by anyone other than the liquidator is void (section 127(1), 1986 Act).
  • All company papers must state that the company is in liquidation (section 188(1), 1986 Act).
  • The winding up order operates as notice terminating the employment contracts of all the company’s employees, who are thereby automatically dismissed (Re Oriental Bank Corporation, MacDowall’s Case (1886) 23 Ch D 366).
  • There is a stay on the commencement or continuation of proceedings against the company except with the permission of the court (section 130(2), 1986 Act).

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Our expert Winding Up Petition and Insolvency Solicitors & Barristers provide professional and specialist legal advice to guide you to the best legal outcome. Our team of London lawyers are based in Middle Temple adjacent to the Royal Courts of Justice. For your case assessment and for more information about our legal services get in touch using our online form, ☎ 02071830529 or email us on contact@lexlaw.co.uk.
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