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:-
- Reasonable grounds for believing that coronavirus has not had a financial effect on the company or
- 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:-
- Do not let you Debtors exceed their credit limits.
- Keep on top of credit control.
- 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
All articles posted on the Lane and Co website are intended for information purposes only and do not represent legal advice on which reliance should be placed. Visitors to the website are hereby placed under notice that they should take appropriate steps to verify such information. No visitor should act or refrain from acting on the information contained in any article without first verifying the information and as necessary obtaining legal and/or professional advice.