IN 4.2 Winding-Up Petition

From 6th April 2017, the Insolvency (England and Wales) Rules 2016 (IR 2016) come into force and this form will no longer be of relevance and should NOT be used. Please refer to the Companies House website for IR 2016 related information and forms.

If a debt is over £750, you can issue a statutory demand for the money requiring payment within twenty one days failing which you can present a winding-up petition. The threat of a winding-up petition can often result in payment being received earlier than with Court proceedings.

If you are considering taking this action you should be confident that, should the winding-up occur, your debtor's net assets will be sufficient to provide you, as one of the creditors with an acceptable return. Otherwise your success in winding-up the company may leave you as an unpaid creditor.

The Courts are, however, likely to look dimly on such an application if the intent behind the winding-up proceedings is simply to get a debt paid rather than a genuine belief in the insolvency of the debtor. It can backfire if you follow through the procedure and it fails. The Court is likely to award costs against you if it thinks you have tried to take advantage of the process, and the procedure ought not to be used unless you have supporting evidence that the company is insolvent.

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