The temporary changes imposed by the Corporate Insolvency and Governance Act 2022 are over. Winding Up Petitions are back to normal. Contact our experts for immediate help with winding up petitions .
It has been confirmed that from today, 1 April 2022, the restrictions on the issuing a winding up petition imposed by the Corporate Insolvency & Governance Act 2020 (“CIGA 2020”) have come to an end.
It had been anticipated that some of the requirements that were introduced, such as a change to the debt threshold amount, would remain in place. However, this has not happened and everything will go back to the position pre March 2020, as though CIGA 2020 never happened.
This therefore means that a winding up petition can now be presented on the basis that:
- The debt owed to the petitioner is for a sum greater than £750.00;
- There is no requirement to provide the debtor company 21 days in which to make a satisfactory offer of repayment; and
- There is no requirement that a statutory demand has been issued against the debtor company first.
The only exception is where the debt owing is in respect of commercial rent arrears resulting from financial impact of the Covid-19 pandemic as such is now governed by the Commercial Rent (Coronavirus) Act 2022 which came into effect on 24 March 2022
Likely effect of new changes
The changes coming in to force from 1 April no doubt see a significant increase in the number of winding up petitions being issued which may well have an effect on the efficiency of the Courts and the turn around time for such petitions. The reduction of the temporary limit from £10,000 to £750 will have a huge effect on the number of petitions being issued.
How can we help?
Whether you are thinking of issuing a petition or having to defend one – we have the expertise to assist you.
Issuing winding up petitions to collect debts
Our experienced debt recovery team is ready to provide you with any assistance that you may require in respect of the recovery of monies due to you, advising you on the most suitable recovery option whether it be winding up proceedings, statutory demands or the use of the traditional county court claims system.
Defending winding up petitions
If you find yourself on the receiving end of either a statutory demand or a winding up petition, we have the team to help. We can provide legal assistance and advice on the following:
- defending a winding up petition;
- obtaining an injunction at Court;
- negotiating settlement of petition debt;
- getting the petition removed from court;
- obtaining a validation order from the court to allow the company to keep trading;
- company rescue and restructuring advice;
- making sure you are fully protected as a director from personal claims from the HMRC or liquidators.