Winding Up Petition
If you fail to pay a debt of over £750, you may find that one of your creditors decides to send a Winding Up Petition to the court.
If successful, the Winding Up Petition will result in the court issuing a Winding Up Order which means your company will be forced into compulsory liquidation.
A winding up petition is the most serious action that can be taken against you as a business. This is a critical situation with severe consequences that cannot be ignored. Despite this though, it is also often the last resort taken by a creditor demanding payment, due to the associated legal fees.
If you find yourself in this situation it is extremely important that you understand how a winding up petition works and what it could mean for your business.