What does winding up petition mean for the company?

What does winding up petition mean for the company?

WINDING UP PETITION

Have you been threatened by a creditor with a winding up petition or maybe have had a winding up petition served on your company?

What does winding up petition mean for the company?

The biggest number of winding up petitions being issued are by HMRC for none payments of tax for VAT, PAYE or corporation tax. Some company directors are smart enough to seek professional advice as soon as they know there is trouble ahead with company debts, they seek professional advice and end up saving their business regardless of the amount of debts to the company. Then there are other directors who wait until it is too late and the petition has landed in the post.

The early warning signs is the best time to get an insolvency auditor involved to help you plan on how best to deal with the debts and avoid the petition regardless of the size of debt or debts for your company. The other avenue open to the early warning signs person is to get a turnaround practitioner involved to help turn a viable business around. Provided you have a viable business worth saving an insolvency auditor or a turnaround practitioner will be able to help you structure a plan to save your business from a winding up petition.

On the other hand if you have not had the chance or the opportunity to seek advice and you have had the winding up petition served on you then your options are very few. One, is to fight it if you have a good defence as you have an ongoing dispute over goods or services with the creditor. Two, pay the full amount plus any legal costs before the court hearing day and have the petition discharged. Three, if you have a viable business which could be turned around then we might be able to get the courts and the creditor to agree to an administration order to save and restructure the company as this will result in returning more money than a liquidation via a petition. There are a few more options which are also open but these all depend on your financial position short term and long term.

Regardless of where in the winding up petition cycle you are there is always of finding options open to your problems provided your business is worth saving.

Most of my clients come to me seeking an umbrella once the storm has arrived on their doorstep, this is where I help them by coming out of the cold storm and having a nice hot coffee or tea and see what solutions and option we can create to save their business.

If you need professional help and advice to save your business from the storm, then give me a call on 0800 24 0800 and leave me a message with a brief description of the problems you are facing and the best time to call you back for private and confidential chat to see how we can assist you.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...
HMRC Winding Up Petition

HMRC Winding Up Petition

WINDING UP PETITION

If your company has been issued with a HMRC winding up petition, the three most common questions we get asked daily are:

1.       Can the winding up petition be stopped?

2.       Why will HMRC not accept an offer for the debt?

3.       Do I still have options, even in this stage in time?

Can the winding up petition be stopped?

Yes a winding up petition can be stopped in a number of ways but this all depends on a few factors and the main factor being, will the creditors get more money on realisation of assets with another option i.e. an Administration Order or a CVA than if they were to continue going down the winding up rout.  Secondly is the business worth saving or rather the question as I would ask have you got a real business that’s worth saving?

Some of the factors worth mentioning are what assets has the company got? Are the assets worth more than the debt? These are all factors that have to be taken in to account when deciding to save your company from a petition.

Why will HMRC not accept an offer for the debt?

When a petitioning creditor issues a winding up petition it is normally as a last result with no other option to turn than the courts to close the company down and to liquidate the assets if any to pay off creditors. In the opinions of HMRC they have tried to collect the debt and have given you ample time to pay up with plenty of warnings and notices but the debt not being fully paid off.

Once the matter goes in to the legal department then the court lead process takes over. To me it is madness as to why HMRC will not take a settlement for what is being offered rather than wind the company up which might in most cases end up with zero and out of pocket cost for courts also i.e. the tax payer. This is really and totally unnesscessory in about 45% of the cases when they can get some money back rather than a big fat zero.

Do I still have options, even in this stage in time?

Yes a petition can always be stopped at anytime if you are able to pay the debt in full and any legal costs incurred by the petitioning creditor. Like I said above is the business worth saving, are the assets worth more than the debt or not, is there a revenue stream that is dependable for future income and also is there a good will in the business, the client base your suppliers base. There are a number of factors that need to be taken in to account.

Most of the factors as with any business are around the value in monitory terms and also factors by how many jobs will be saved or lost if the winding up petition went ahead.

For a private and confidential telephone chat why not telephone our directors helpline on 0800 24 0800 and leave short message for me Moe Nawaz with the best time to call you back for a chat about finding the best option for you and your company. Or alternatively find a local insolvency auditor to advise you of your options with the winding up petition.

Moe Nawaz: Author – Speaker – Turnaround Practitioner – Insolvency Auditor 

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...