Legal Advice for Winding Up Petitions in Stockport & Cheshire
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Winding Up Petition Solicitors play a crucial role in the enforcement process and can initiate legal action on behalf of a creditor to close down a company that is unable to settle its debts.
A winding up petition is essentially an application to the court made by a creditor seeking to liquidate a debtor company that is in debt to them. If it is successful, the business is liquidated and placed into insolvency.
The process of winding up a company due to them being unable to pay the debt is complex and involves various legal intricacies. The Winding Up Petition Solicitors at Mounteney have the necessary experience and expertise to effectively manage these matters.
We understand that each case is unique and comes with its own set of challenges. We tailor our approach to ensure the best possible outcome for our clients.
If you are considering legal action against a company that owes you money, we urge you to act quickly and get in touch with our Winding Up Petition Solicitors today.
What is a Winding Up Petition?
A winding-up petition is a legal action taken by a creditor to close down a company that cannot pay its debts, this is governed by the Insolvency Act 1986 and the Insolvency Rules 2016.
The petition is usually issued after a statutory demand for payment has already been issued and the company has either failed to pay within the 21 day period or they are disputing the demand. To serve a winding up petition the creditor must be owed at least £750, this is normally evidenced by a statutory demand which is not set aside or a Judgement of the Court. For the petition to be successful, the creditor must believe that the company is insolvent, meaning it cannot pay what is owed.
How can Winding Up Petition Solicitors help?
Our team of experienced Winding Up Petition Solicitors, specialising in handling winding up petitions, provides extensive support at every stage of the process. We understand that tackling legal complexities can be overwhelming, but with the guidance and expertise of our dedicated Winding Up Petition Lawyers, we will ensure that you are well-informed and supported throughout the entire process. Our services include:
- Presenting the Petition to Court: We prepare and submit the winding up petition to ensure it complies with all legal requirements.
- Advertising the Petition: We handle the necessary advertisement in the London Gazette to inform other creditors.
- Attending Court: Our Winding Up Petition Solicitors will represent you at the court hearing to advocate on your behalf.
- Liaising with Creditors: We communicate with all potential creditors to manage their claims and interests.
- Obtaining and Administering the Court Order: Once the court order is granted, we ensure its proper administration.
You will get legal representation in any discussions, which are likely to lead to their more favourable conclusion from your perspective. You will also get proper legal representation in any legal processes required, meaning errors are less likely and a favourable outcome (including the possibility of the recovery of legal costs) more likely.
What is the Winding up Petition Process?
1. Presenting the Petition
The first step after a statutory demand has been issued and no payment has been made, would be to prepare and present the winding up petition to the court. Our Winding Up Petition Solicitors will ensure that all legal requirements are meticulously met, providing a strong foundation for your case. The petition will then be served at the company’s registered office, formally notifying them of the legal action being taken.
2. Advertising the Petition
To comply with legal protocols, the petition must be advertised in the London Gazette. This advertisement must occur not less than 7 days after serving the petition and at least 7 days before the court hearing. The purpose of this advertisement is to inform other potential creditors and interested parties about the petition filed against the company. This allows them to be aware of the company’s financial situation and potential liquidation, allowing them to support the petition if they choose.
3.Court Hearing
The next stage will be in a court hearing, in this hearing they will assess the situation and hear both sides’ representation. Following this, the court will then review the petition and if successful, will issue a winding up order, placing the company into liquidation. Our Winding Up Petition Solicitors will represent you at the court hearing, advocating on your behalf to secure a favourable outcome.
4. Obtaining and Administering the Court Order
Once the winding up order is granted, our winding up solicitors will oversee its administration to ensure all legal procedures are correctly followed. This includes the appointment of the Official Receiver as the liquidator, who will take control of the company’s assets and distribute them among the creditors.
Throughout the process, we will communicate with all potential creditors to manage their claims and interests. This ensures a coordinated approach, enhancing the chances of a successful resolution.
How long does a Winding Up Petition take?
Overall the process can take 2-3 months as this is a lengthy process that involves a few third party stages and a court hearing for a decision to be made. We would expect to draft a petition and submit it to Court for issue within a week of taking your instructions.
The Court normally only takes a few days to list the petition hearing and to return the issued petition for service. The Petition can be advertised 7 days after an issued copy is served on the company. The petition court hearing date where the petition may be granted, could be several weeks or months after the petition is issued.
How much does it Cost to Instruct our Winding Up Petition Solicitors?
Your supplier is SRA-regulated Mounteney Solicitors, that charges VAT some customers may be able to reclaim
Our work will be charged at a fixed fee of £1100 + VAT = £1320.
This does not include a £1,600 Official Receiver’s deposit plus £280 Court application fee (both are VAT free). Here is a guide for more information about civil court fees.
In many circumstances, the Petition Deposit may be refundable/recoverable.
If the matter does not settle, and/or a Court hearing occurs, then, the normal rule the Court applies is that the “loser pays the winner’s legal costs” – meaning if you succeed at least some of your legal costs may (and normally would) be recoverable from your opponents.
It is worth bearing in mind that:
- Any actual recovery may not cover your outlay on legal costs even if you succeed
- Your opponent may be ordered to make a payment, but may fail to do so. That will leave you to consider enforcement action, which we will advise on if necessary
- Your opponent may appeal any outcome
- If you fail to succeed it is possible that some of your opponent’s legal costs may (and normally would) be payable by you
- You still have to pay us regardless of whether or not you succeed
If you fail to succeed or otherwise (depending on how the circumstances actually turn out), then further work may ensue. Any such work is not included in the fixed retainer, although you may ask us to do such work for you on the terms (and costs) which will be outlined in your engagement with us.
There is more about our fees on our website.
If you have any questions or require any further information, please don’t hesitate to Contact Us.
Contact our Winding Up Petition Solicitors
For expert assistance with winding up petitions, contact our dedicated team of Winding Up Petition Solicitors. We offer a cost-effective and efficient service to help you achieve the best possible outcome.
With offices in Bramhall, Cheadle, Hazel Grove and Heald Green, our Solicitors in Stockport serve clients throughout Manchester and the surrounding area including Altrincham, Poynton, Wilmslow and Sale.
Trust our business solicitors in Manchester to provide you with the professional legal advice you need. Contact us today by phone or visit one of our offices.
By leveraging the expertise and experience of our debt recovery solicitors, you can navigate the winding up process with confidence, ensuring your interests are protected at every step.