Winding up Petition

Our no-nonsense approach to Debt Recovery ensures the best possible outcome for unpaid invoices. Additionally, if it should become apparent your customer is insolvent (unable to pay its debts when due); the presentation of a compulsory Winding up Petition would be appropriate. Although you should never abuse a Winding up Petition as an instrument of debt recovery, it's perfectly okay to present them upon insolvent companies who are unable to pay debts when due.

After a Winding up Petition has been served, your customer could be wound up by the court in a Compulsory Liquidation. To stop this from happening, they could pay the debt before the court hearing date, which would stop the company from being wound up.

Bank Accounts and Other Assets Frozen

When a Winding up Petition is presented upon your customer, steps can be taken to freeze their bank accounts. As a result:

The debtor company cannot sell, transfer or trade any of its assets without a court order

You can ask the court to appoint a provisional liquidator over your customer's assets if you have good reason to believe those assets could reduce or disappear before the court hearing date.

Why Would Your Customer Pay Up?

Once served, your customer will want your Winding up Petition withdrawn at the earliest opportunity so they can:

Stop the freezing of bank accounts

Use assets freely

Stop other creditors joining your Winding up Petition

Prove they are not insolvent by paying their debts

Avoid possible ruin of their business.

What You Should Know...

Remember, your customer will want to demonstrate their business is solvent, and desire for normal trading without the above impediments. Used in insolvency proceedings, a Winding-up Petition is a very serious instrument, often described as a nuclear-guided missile. Contact Us today if you're having trouble collecting overdue invoices.

Debt Assignment

Debt Assignment can help if you are chasing a large sum, but lack the resources to litigate. At our own risk, we'll engage solicitors, barristers and other experts to commence legal proceedings and enforce collection of the debt. Litigating a disputed debt could easily cost £7,500 over 6 months, and there's no guarantee of a favourable court judgment. In contrast, for a much smaller amount, I&L will:

Take full responsibility of your debt

Chase your customer through the courts.

We bear all losses, so you're insulated from any adverse costs, even if our court actions backfire. The threat of a Winding up Petition usually motivates even the most reluctant customer to pay up, especially if their business is bordering on insolvency. As a result, within 1 day of a new Debt Assignment, we can utilise our resources and lawyers to:

Have an insolvency court issue a Winding up Petition

Serve your customer with the petition

Have their company's bank accounts frozen

Publicise details of the pending liquidation online and in print.

I&L can help you recover payments from overdue invoices easily using debt recovery, debt assignment, and debt litigation solutions. Call 020 7504 1300 now for free and confidential advice...