Debt from customers, particularly other business customers, can rack up pretty quickly, and leave your business in a pretty desperate position. This position can easily become far worse if the customer cannot or will not pay any of these funds back. This can leave you and your business in a horrible situation, where you can see the debtor continuing to trade and run their business with no problems, whilst also claiming they cannot pay back your fees. You will no doubt be looking for a way to force their hand, and reclaim the funds you are due.
This is where the winding up petition comes in. By following a set process of demanding payments at various stages such as sending letters and statutory demands, etc., you are able to then issue a winding up petition against the debtor company. In proving that the debtor cannot and will not pay your debt, you are presenting to the court the clear requirement that repayment must be ordered, in order for the company to comply.
Once issued, and winding up is ordered by the court, liquidators are then appointed, and all assets of the company are collated and sold with the main intention being to repay the creditors. You may be in a long line of creditors, meaning you are not paid immediately, but, more often than not, some money at least is recovered, and the company is shut down, which is often a positive outcome for clients.
At Martin Kaye Solicitors, we have plenty of experience in dealing with this sort of matter, and look forward to seeing how we can assist you best in the future.
Please contact us by email at law@martinkaye.co.uk or by telephone on 01952 272222.