Creditors Winding Up Petition
A creditors winding up petition is made to the court by one or more creditors of the company stating that the company owes £750 or more and they cannot pay its debts. The company’s assets are sold and surplus funds are distributed to the company’s creditors in order of priority.
Top Tip: Be aware that if you are the creditor then you might not get all or any of the money owed to you. It is important that you seek advice of other methods to recover money owed to you. Did you know? A winding up petition can still be presented even if a company is already in administrative receivership or voluntary liquidation.
Preventing HMRC Winding Up A Company Over Unpaid Tax
Altion Law was instructed by a Ltd Company which had been placed into a potential liquidation following Insolvency proceedings issued by HMRC for unpaid tax. HMRC had alleged that the company had deliberately avoided tax and defaulted on payments. HMRC had issued a winding up petition based on these allegations, which had led to the company bank accounts being immediately frozen.
Previous lawyers and accountants had advised the client that there were no prospects of contesting the insolvency action and that the company should be liquidated. The Director wished to fight for his company and approached Altion Law for a specialist opinion. Altion Law considered the facts of the matter and advised the company on options and represented in court to oppose and contest the wind up action, on the basis that HMRC had made some errors and false allegations.
A successful interim application was also made to obtain an immediate Validation Order so that the company could continue trade, whilst the wind up petition was heavily contested, and then settled before the main court hearing.
Altion Laws involvement and action resulted in the petition being dismissed and permitted the company to continue operating successfully again.
Altion Law are specialists at advising and representing parties with any Insolvency matters. If you would like to have a confidential discussion with a member of our team, please complete our Contact Us Form, and we will call you back at a time that is suitable for you or you can contact us directly on 01908 414990.