HomeFWJ TakeawayWinding up petitionsDefending a winding up petitionWinding up petition disputed debt

If a winding up petition is genuinely disputed - urgent action is often required. As a debtor you can apply for the petition to be struck out or for an injunction to stop it being advertised in the London Gazette. As a creditor, you need to try to extricate yourself from the situation with as little damage as possible. Our superb team can help.

“Winding up petition disputed debt” is a very important subject area.

In terms of the debtor company served with a winding up order, if it believes the debt is genuinely disputed, then it can take the appropriate action to have the winding up petition dismissed from court.

  • a winding up petition should only ever be issued in circumstances where the debt is undisputed (or at least £750 of it is undisputed).
  • if the debt is genuinely disputed and a winding up petition has been issued, the winding up court will very much frown upon that process and can have it struck out for abuse of process.
  • this is because the courts generally view winding up petitions as something which should only be issued where the company is genuinely insolvent and should be wound up so that there can be a fair distribution of the remaining assets to the creditors of the company.

Therefore, if a debt is genuinely disputed

  • the court can strike the winding up petition out; and
  • order very significant costs against the petitioning creditor.

Whilst the petitioning creditor can then issue a traditional county court or high court claims, it will find itself having been on the wrong end of a large costs order for abuse of the winding up process.

It is therefore very important as a debtor company to work out whether the petition debt is genuinely undisputed and due and owing. Equally, a petitioning creditor, prior to issuing a winding up petition, should be absolutely clear that the debt or at least £750 of it is undisputed.

Winding up petitions are something which should be used with great care and in circumstances where it is unclear if the debt is genuinely undisputed, should not be used.

Please contact one of our friendly expert winding up petition solicitors now for your friendly consultation. At Francis Wilks & Jones, we have a team of dedicated winding up petition experts ready to take your call. Whatever your question, we can help you. Don’t delay – contact the winding up petition experts now.

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