Winding up Petitions can be a great way of recovering a Judgment Debt. Our brilliant team has successful recovered millions of pounds from debtors. Equally, if you are on the receiving end of a petition - we have huge experience in negotiating settlement or advising on company rescue options.
Winding up petition judgment debts can mean a variety of things. But they normally relate to the use of a winding up petition to enforce a judgment obtained in the small claims court, county court or high court.
- following the success by a claimant in traditional court proceedings, the court will award a judgment in favour of the claimant;
- if that judgment is then not paid by the defendant within the appropriate time, one of the enforcement routes available to a claimant is the use of a winding up petition;
- it can only use a winding up petition if the defendant is a limited company or limited liability partnership;
- there are other enforcement methods such as instructing the high court Enforcement Officer and third party debt order but a common one that is used is to issue a winding up petition.
Once a judgment has been obtained in normal court proceedings, it is very difficult for a debtor to then defend a winding up petition as the debt is deemed undisputed. It is based on a court judgement. This means that the petitioning creditor is in a strong position to wind up the company.
- however, the debtor might just need time to pay and often we can assist with negotiating a settlement which works for both sides. After all – the creditor, having gone through the normal court process to obtain a Judgment debt would much prefer to get paid than wind the company up;
- sometimes however, the debtor is just being stubborn and “playing the game” and a winding up petition can certainly focus the mind.
Whatever your situation, at Francis Wilks & Jones we can assist you with winding up petition judgment debts.
If you have a winding petition question we are the firm to help. Call now us now to speak to one of our friendly advisers.