A winding up order for non payment of taxes can be frightening. But there are always things which can be done - negotiated settlements, company restructuring, disputing the claim, seeking business funding or applying for a validation order as just some of the choices. Let our experts help.
Both creditors and debtors can require assistance in negotiating settlement of winding up petitions. At Francis Wilks & Jones we can assist with this particular process.
How we can help creditors
If you are a creditor, the whole purpose of the winding up petition procedure is often to help recover the petition debt.
Therefore, it is often much more sensible to enter into a sensible repayment agreement if the debtor can’t pay the debt and costs in one go. The alternative is to advertise the winding up petition and wind the company up. But this will almost certainly mean that you get no money back. As soon as a petition is advertised, it is likely that other creditors will support the winding up petition, the company’s bank account will be frozen and the company fail.
If a winding up order is made then it is highly unlikely that a debt will ever be paid.
- therefore a sensible negotiated instalment settlement of a winding up petition debt if often the right way to go;
- at Francis Wilks & Jones, we have great experience of doing this and if needed, getting the winding up petition adjourned (delayed to a later date) at the winding up order court hearing to enable pressure to be kept on a debtor to make the agreed payments.
We can also advise on the tricky questions of whether to withdraw the petition prior to the winding up petition hearing when only some of the debt and legal costs still remains outstanding. There are important considerations to take into account in such circumstances.
How we can help debtors
From a debtor’s perspective, we can help negotiate that realistic instalment plan to pay off the winding up order debt. We can assist in this part of the winding up petition process and often it requires provision of some financial evidence to the petitioning creditor to persuade them to enter into a repayment proposal.
Whatever your situation, the winding up petition team at Francis Wilks & Jones can assist.