Post-Pandemic: Winding-Up Petitions Return To Normality

As of the 1st of April 2022, restrictions relating to winding-up petitions introduced during the Covid-19 pandemic were lifted. This will be welcome news to creditors whose ability to recover outstanding debts throughout the pandemic has been hampered.

Under these eased restrictions, the debt threshold required to bring a winding-up petition was increased from £750 to £10,000 and a requirement to provide a debtor with a Section 10 Notice twenty-one days before presenting a petition was also introduced.

These changes highlighted an attempt by the UK government to protect small businesses with relatively small outstanding amounts due to creditors. As the weight of the pandemic has begun to lift, the government is sending the message that it is very much back to business in terms of debt recovery.

As of 1 April 2022, the £750 threshold has been reintroduced and the notice period has been removed. The threshold reduction will enable creditors to once again take drastic action to recover monies owed, even if the sum is not especially large. Additionally, the removal of the 21-day notice period will re-introduce the element of surprise, something very important when presenting a debtor with a winding-up petition. This policy is a welcome return for creditors who have been unable to enforce their rights for the greater part of the pandemic.

Our highly-qualified team of debt recovery barristers and solicitors ensure that the return to normality is a welcome sight for you. 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.

Given the urgent nature of winding-up petitions and the detrimental effects on a company and individuals’ livelihood, it is important to seek legal advice from the outset.

Unlike most UK lawyers, our team are dual-qualified with experience in petitions from both a solicitor’s and a barrister’s perspective. We are masters of winding-up petitions and insolvency dispute litigation. We are a specialist City of London law firm made up of Solicitors & Barristers. We’re based in the Middle Temple Inns of Court (next to the Royal Courts of Justice where the High Court and Central London County Courts are based).  We are experts in dealing with matters surrounding insolvency in particular. Our team has unparalleled experience at both issuing and defending winding up petitions at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules. We offer a quick no-cost initial telephone call to establish whether or not we can help you; just call our team on 02071830529.