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).
Our dual-qualified Solicitor & Barrister team assess your case at the outset. We will quickly determine the merits and prospects of the claim and then also advise you on how to obtain an optimal outcome.
“This firm have an extremely deep understanding of the law surrounding their specialist areas. We were on the back foot and fighting to keep a company alive, I was truly staggered by what they achieved in the few days they had, they exceeded all expectations and achieved our goal for us… I can highly recommend this firm.”
Mark SargentPartner at ARKLE Partners LLP
“LEXLAW successfully handled our debt recovery case. I would not hesitate in recommending them to anyone who is having problems recovering debt.”
“LEXLAW managed to successfully defend our company against a large international client. The case was settled over and above what we expected in a very short time frame. We were kept informed at every stage of the process which ran very smoothly. I would have no hesitation in recommending LEXLAW to anyone.”
“Would recommend! Successfully defended an unlawful statutory demand on my behalf and all done within 10 days. Great job!”
“LEXLAW helped my company through a very difficult time and supported us with all the legalities that were necessary to help my company to survive. This is a legal company who listens to their client and answers in appropriate terms which are not presented in legal jargon but in terms the client understands.”
“Extremely helpful and professional. They explained the process and executed a fantastic result for us. Highly recommended.”
“LEXLAW were appointed 1 week before the date of a HMRC winding up petition and successfully got the petition dismissed from the Company courts. LEXLAW negotiated a settlement with the main creditors within a couple of days of appointment and successfully represented the company at court to win the case.. I would definitely recommend LEXLAW!”
“LEXLAW is an excellent firm of solicitors. I have used them on several occasions and I am very impressed with their knowledge of the court system and case law. I simply would not go anywhere else if ever I needed representation for any of my companies.”
Dr Shillum Thomas
Areas of Legal Expertise
We regularly undertake insolvency litigation in these core areas:
We can help to bring or defend a Winding-up Petition, obtain an Adjournment or Time to pay, deal with a Statutory Demand, apply for a Validation order or an injunction to stop a petition advertisement.
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.
Frequently Asked Insolvency, Petition and Stat Demand Questions
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?
The debt alleged in the demand to be owing is genuinely disputed on substantial grounds by the company.
The company has a genuine right of set-off against the creditor which exceeds the amount claimed in the demand.
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
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  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).
Investors are pursuing Liberty Commodities Ltd, part of the group Liberty Steel, over unpaid debts, with major banks Credit Suisse and Citigroup issuing a winding up petition against the company in March 2021.
Our insolvency team were instructed to defend a winding up petition for a debt of over a quarter of a million pounds presented against our client company in the midst of the global pandemic following implementation of the Corporate Insolvency and Governance Act 2020. The petition was successfully dismissed with the award of costs on…
ROLLS BUILDINGREMOTE HEARINGSBefore INSOLVENCY AND COMPANIES COURT JUDGE BARBER Wednesday 17 March 2021 At 10:30 AM by Microsoft Teams Winding Up Petitions CR-2019-008384 Stress Free Estates LimitedCR-2020-004219 Ocean Cooling LtdCR-2021-000030 RMI (F&P) TITLE LTDCR-2021-000101 Pimmax Ltd
CIGA came into force on 25 June 2020 which was implemented to afford some protection to companies who are facing debt recovery action including insolvency proceedings as a result of the effect of coronavirus on the company. Nearly a year on, it is difficult to find a company that has not been impacted by coronavirus…