Winding up petitions can be dismissed if the debt is subject to a genuine dispute or they are used as an abuse of process. Our team deals with these types of situations very regularly - for both petitioners and companies on the receiving end. Whatever your position - it is vital to take the right action. Let us help.

Winding up petition abuse is when a party (usually a creditor) uses a winding up petition inappropriately to recover debts which are in fact disputed or where the debtor has a valid cross claim.

It is important to understand that winding up petitions should only ever be issued in circumstances where the debt or at least £750 of it is undisputed or the debtor does not have a cross claim which extinguishes the creditor’s debt.

  • to issue a petition in circumstances where the debt is clearly disputed is winding up petition abuse.
  • abuse of process can lead to the winding up petition being dismissed by court and the Petitioner paying a hefty penalty in legal costs.
  • Indeed, winding up petition abuse can lead to claims later on for damages by the recipient company of the winding up petition and therefore, winding up petition abuse is something which very much needs to be avoided at all times.

Speak to an expert now At Francis Wilks & Jones, we are experts in all matters relating to winding up petitions. This includes winding up petition abuse. Whatever your enquiry, please do contact us.

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