What’s it for? Forcing an insolvent company into compulsory liquidation. Or to liquidate the company’s assets in order to repay creditors.
The serving of a winding up petition often follows initial service of a statutory demand. The company has either ignored the service of the statutory demand, or has no ability in which to pay the debt. Diem Legal can serve a winding up petition for you 21 days after we have served a statutory demand to a company if there has been no response.
This is a serious course of action for the creditor take and can have severe consequences for the company. The creditor has ultimately lost patience and is willing to put the company out of business. By this time mediation is usually no longer an accepted form of solving the debt problem. Diem Legal recommend speaking to a legal professional if you have been served a winding up petition.
Following the service of a winding up petition, the judge will hear the petition. If it is clear that the company is unable to pay and there is insufficient evidence that the company will be able to pay back its debt in the future, it will issue a winding up order. Once this happens an official receiver will be nominated to manage the process of liquidating the company and fairly dividing up the proceeds of any assets to creditors, if applicable.
More information on winding up petitions can be found here https://www.gov.uk/wind-up-a-company-that-owes-you-money/overview
Diem Legal professionally serve winding up petitions throughout the UK for affordable fixed fees.
Please note: The above is not meant to constitute legal advice. The law changes regularly and as such we recommend speaking to a legal professional for clarification.