From 30 September 2021 to 30 March 2022, the current restrictions on winding up petitions will change, as announced recently by the UK Insolvency Service. Restrictions to winding up petitions have been in place since the start of the COVID-19 pandemic, however, the Government has sought to lift these restrictions. However, creditors should note that the government have increased certain safeguards, including increasing the debt threshold to £10,000 (from the previous £750). The Government have also restricted the right of creditors to seek a winding up petition over leasehold liabilities.
We are leading experts specialising in insolvency proceedings. Our experienced City of London solicitors and barristers regularly assist companies facing a winding up petition; individuals served a statutory demand; or creditors owed money and considering issuing a winding up petition.
What is a winding-up petition?
A winding-up petition (WUP) is a legal action taken by a creditor or creditors against a company that owes them money. The court will grant a winding-up order if the petition is approved. This will then allow the creditor(s) to appoint an insolvency practitioner as liquidator to collect the company’s assets and distribute them among the creditors in order to repay the debt.
What are the changes to winding up petition process?
The UK government introduced a temporary increase to the minimum debt level required for a winding up petition.
Since the beginning of the pandemic, restrictions were put in place to prevent creditors from taking steps to wind up debtor companies. Those restrictions are expiring soon on the 30th September 2021. In order to reduce the risk of the month of October seeing a mass rush by creditors seeking to wind up debtor companies, the UK government has introduced a further temporary measure in relation to liquidation petitions which is the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2020.
Therefore, from 1st October 2021 to 31st of March 2022, a creditor will be able to present a petition to wind up a debtor only if certain conditions are met. The main criteria are:
(1)The debt must be at least worth £10,000;
(2) The creditor must have allowed the debtor at least 21 days to put forward proposals for repayment; and
(3) The debt must not be in respect of rent or other sum payable by a tenant under a lease.
This measure which is temporary until 31 March 2022 allows breathing space for companies who owe rent arrears and those who might otherwise have faced winding up proceedings in respect of relatively minor sums.
We represent you at Winding up Petition Hearings
Although we are based in the legal heart of London, operating as the only law firm in the historic Middle Temple Chambers, we provide comprehensive nationwide coverage to represent you at any winding-up petition hearing. Our team of solicitors and barristers will prepare grounds of opposition and a witness statement for you.
We will represent you at the winding-up petition hearing and will provide our own barristers or external local counsel to any hearing across the country.
Not based in London? We provide nationwide representation
We will represent you no matter where you are based in England or Wales.
If you contact us through our contact form, by email or by phone, one of our winding-up petition team members will contact you by phone to discuss your matter and assess whether we can assist you.
If we can, we will arrange a conference with a senior member of our winding-up petition team. This meeting will take place either in person, via our telephone conference facilities or via Skype, depending on your preference. Therefore, no matter where you are based in England or Wales we can represent you.
Instruct Specialist Insolvency Lawyers
We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inn of Court adjacent to the Royal Courts of Justice. We are experts in dealing with matters surrounding insolvency in particular issues. Our team have unparalleled experience at serving statutory demands, negotiating with debtors/creditors, setting aside statutory demands and both issuing and defending winding-up petitions vigorously at the Royal Courts of Justice (Rolls Building), the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.