Company Winding Up Petition
Everyone who starts a business wants to ensure it is a success. But sometimes even the most successful businesses face situations which are eventually to be their undoing. This could be anything from bad management to a recession right through to competing businesses.
If a business owes money to its creditors and does not take the steps necessary to resolve this situation, it may be faced with a winding up petition. Read on to find out more about what this means.
What should your first move be if you are given a company winding up petition?
Your first move should always be to get fast professional advice from insolvency auditor. Do not underestimate the power of a winding up petition because it could well be the beginning of the end for your business. It is possible to stop one in its tracks, but you must seek the advice of a insolvency auditor who is experienced in these situations to discuss your options.
For example if you can immediately clear your company debt to the creditor who has initiated the winding up process you should do so as quickly as possible. On no account should you ever miss a court appearance for the petition to be heard, otherwise you can be sure the petition will be granted.
If you are able to act quickly there may be an opportunity to ward off the winding up petition and instead agree on a voluntary liquidation arrangement. Again a insolvency auditor can help to advise on this possibility.
What about an HMRC winding up petition?
This is basically much the same thing, but in this case the winding up petition is issued by HM Revenue and Customs. If your company has been unable to pay its taxes on time (this could include VAT if it applies to the turnover reached by your business) it may eventually issue a winding up petition.
The HMRC does not issue these until it has tried to attain payment in other ways. But it has been stated that they are doing so more quickly now than they have in the past. This is possibly to recoup any cash that is owed to them more quickly than it would be otherwise.
So you can see that the winding up petition procedure is a serious one – and one that you should seek help and advice for as quickly as possible.