Due to the pandemic the Government suspended Winding Up Petitions.

This was supposed to come to an end on the 30th June 2021, the Government have however extended this to 30th September 2021.

The rules do provide that petitions can proceed, however there is a test that has to be satisfied in order to do that.

The petitioner must prove the following to the Court:-

  1. Reasonable grounds for believing that coronavirus has not had a financial effect on the company or
  2. That the Debt would have arisen anyway regardless of the pandemic.

As such, this is not currently an option.

What should you do to avoid being left behind?

Here are a couple of tips:-

  1. Do not let you Debtors exceed their credit limits.
  2. Keep on top of credit control.
  3. As soon as Debtors start to exceed their credit limit, take action and chase them up early with a Letter Before Action and if payment is not made issue proceedings to recover the debt.

You want to make sure you stay at the front of the queue to make sure your business is paid

If you find yourself in this situation and require further advice, please contact us on 01922 700 730.

Leave your Debts in our Capable Hands

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