Our support and services for companies who are considering closing
A compulsory liquidation is not something that would happen overnight or at the initial stages of a creditor collecting in monies owed. A compulsory liquidation is often the creditors' last resort and is not a decision taken lightly.
The company closure is inevitable when a company is failing to manage and maintain its liabilities, leading a company into an insolvent position.
A creditor is likely to petition for a company to be wound up and if an agreement isn’t reached to repay monies owed, the company will be placed into compulsory liquidation.
Before a decision to liquidate the business is made, the director(s) will have been chased for the full balance or to agree to a sustainable repayment plan to pay back monies owed.
A statutory demand will be issued to the director(s) giving them 21 days to either pay in full or dispute the debt. If these terms are not met it is then that the creditor(s) would look to Compulsory Liquidate the business.
A compulsory liquidation is not only the last resort for the creditor but is also the worst case and most serious action that can be taken against your company.
It costs the creditor approximately £2,000.00 to issue a statutory demand and serve a winding-up petition, this empathizes the creditors’ commitment to closing down your business.
Upon receiving a winding-up order, it is imperative you either contact the court within 7 days or contact a specialist for help and guidance. If the court does not receive a response within 7 days, you will receive a winding-up order from the court; meaning you are being told to close down your business.
Received a winding-up petition?
If you have received a winding-up order, you still have options but you must take immediate action.
Voluntary Liquidation is still available if you have received a winding up petition however it is important that the petitioning creditor is engaged ASAP.
Company Money Worries are here to guide and support your business and whether a Voluntary Liquidation is right for your business.
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