Unfortunately, if the company is going through a difficult period, or is insolvent, that is not always possible. In this case, the best thing you can do is to communicate with unpaid creditors and try to reach an agreement as to how the company can repay the outstanding debts. If your company is insolvent, you may want to consider taking action and implementing a company rescue process such as a company voluntary arrangement or entering the company into administration.
If the company is unable to pay its debts due, it is likely to be insolvent. If you owe money to HMRC, you can negotiate a Time to Pay Arrangement where you repay the outstanding taxes over an agreed period of time. A company voluntary arrangement is a formal process to achieve agreement between a company and its unpaid creditors. The High Court will regard a company as being unable to pay its debts if any of the following occur:.
If a company owes you money, you can only wind it up by presenting a petition to the High Court for the company to be wound up compulsory winding up. Compulsory winding up compulsory liquidation is when the High Court makes an order for the company to be wound up 'a winding-up order' on the petition of an appropriate person, usually a creditor. A winding-up petition is usually presented by a creditor on the grounds that the company cannot pay its debts, and this has to be proved in the Court.
The telephone number is and you should ask to be put through to the Bankruptcy and Chancery Office. To ensure that all legal requirements are met, it is usual to instruct a solicitor to deal with issuing a winding-up petition.
To present a winding-up petition you cannot just complete the petition and present it to the High Court. If there are legal proceedings, this can result in costs being awarded against either party.
For example, costs could be awarded against a person presenting a winding-up petition if the Court believes that the winding-up procedure has been used in inappropriate circumstances where the debt is clearly defended. Insolvency law requires that before the Court can hear the petition, affidavits must be lodged at Court verifying the winding-up petition. The petition must usually be served on the company at its registered office.
An affidavit of service of the petition must be filed at Court and the petition must be advertised in the Belfast Gazette at least seven days after the petition is served on the company and at least seven days before the hearing.
Clearly, your argument may be that the court did not have all the relevant information when making the decision of the winding order and you will need to persuade a judge to reverse the decision. At the hearing you will need to explain to the judge why you consider that the order should be rescinded and either the Winding up will be allowed to continue or alternatively a rescindment order will be made. This is an order by the court to stop the insolvency from proceeding any further.
This application can be made at any time and the court may order that the winding up be stay either permanently or for a specific period of time. In these cases, the Official Receiver, a Liquidator, a creditor or shareholder of the company may make this application for a stay of proceedings. A Liquidator is able to make an application for an Administration Order which will have the effect of rescinding the winding up order and will allow an Administrator to be appointed over the company provided that one of the purposes of going into Administration can be achieved.
It is therefore imperative that you act fast and as soon as you receive a statutory demand or a winding up petition that you take immediate action and contact us at AABRS for professional advice. The chances of rescuing your business are increased if you take matters in to your own hands at the earliest stage. Once the order has been granted, the court will appoint an Official Receiver to act as company liquidator. The OR will deal with creditors, investigate the actions of the directors in the period running up to the insolvency, or they may recommend the appointment of an insolvency practitioner.
Fill in the form to receive a free call from one of our advisers. We can also arrange to meet you for a free initial consultation at our office. What Does a Winding up Order Mean? Get Free Advice The Winding up Petition Court Hearing If you decide to oppose the petition, you will need to file in court a witness statement which will demonstrate the grounds of your opposition.
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