If your company bank account has been frozen because of a winding up petition – we can help. A validation order application is normally the best way to proceed, allowing you to continue trading and avoiding the risk of personal liability as well. We have been helping businesses since 2002. Let our team of experts help you too.
This is because the bank is very aware that any movements of money in the account after it has been put on notice of a winding up petition might possibly lead to a potential claim against the bank for allowing monies to be spent from the bank account. The bank therefore will often take the blanket approach of having the bank account frozen once it finds out about the winding up petition.
Validation orders are needed from court to keep trading
- validation orders are a type of court order which allows (or validates) the debtor company to continue trading and to continue using monies in its bank account.
- once the validation order has been received from the court following an application, it is served on the bank and the bank will enable monies to be used from the bank account.
Even where a petition is formally unadvertised in the London Gazette (an “unadvertised winding up petition”), the bank can find out about it from the Central court Register and as such, a debtor company can quickly find his bank account frozen even when a winding up petition has not been formally advertised in the London Gazette.
Therefore, as soon as a debtor company is served with a winding up petition, it is very important it thinks carefully about obtaining a validation order in order to keep trading and also to avoid possible personal liability for the directors for making void dispositions from the company’s bank accounts.
Francis Wilks & Jones is the county’s leading firm of winding up petition and validation order solicitors. We are experts in what we do and help get bank accounts unfrozen and your business back on track. Whatever your enquiry, we can assist.