What is a Winding Up Petition?
A Winding Up Petition (WUP) is a legal notice that a creditor has submitted to the court. A WUP can only be filed if you owe the creditor more than £750 and is ordinarily issued when a statutory demand goes unpaid for over 21 days.
The petition is heard in court and if the order is made, the Official Receiver is appointed as Liquidator. The petition is advertised prior to the Hearing at which time, the company’s bank account will be frozen.
There are serious implications for a director where assets are dissipated following the receipt of a WUP.
This is not a suitable process, and you should contact us immediately if there is the opportunity to save the business.
What do I do if I receive a WUP?
A WUP doesn’t necessarily mean the end for your business, but it is essential to act quickly to prevent the WUP being heard at court. If no action is taken, the Order is made at the hearing for the company to enter into Liquidation. It is important to note that:
- Options to deal with your problems are extremely limited once the Order has been made
- If a winding-up order is made, any dissipation of assets after the date of petition is void
- When the WUP is advertised, your bank will freeze your company’s accounts, and suppliers and lenders are likely to stop trading with the company. This will escalate problems
You should contact us immediately upon receipt of the WUP to understand what options are available.
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It’s important to speak to people who can help as early as possible. We have experienced teams who can help you and work with you to achieve the best outcomes for you and your business. For a no-obligatory chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.
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