Insolvency Proceedings, Winding Up Petitions
If a customer fails to pay an undisputed debt, the law gives you, the creditor, certain options. Issuing legal proceedings in the County or High Court for the recovery of the debt is one, but instead, it may be appropriate to serve the debtor company with a winding up petition. A petition can be issued so long as:
- the debt is now due
- the creditor has demanded it, but it remains unpaid
- the debt is undisputed
- the debt is for £750 or more
A debtor company faced with a winding up petition will often choose to pay the debt rather than risk insolvency. Therefore, the service of a winding up petition can focus the mind of a slow paying debtor and force payments quickly.
We are located within minutes of the Royal Courts of Justice and within easy reach of the inner London County Courts.
For advice about insolvency proceedings or winding up petitions please contact our Company Litigation Department on 020 7420 7020 or enquiry@sethlovis.co.uk.