Receiving a winding up order is extremely worrying for a business owner, but an insolvency practitioner may be able to help you avoid liquidation.
Issued to non-paying businesses by creditors as a last resort to try to recover their money, a winding up order calls for the courts to liquidate a company to release funds for paying off debts owed.
Once a winding up order has been received, seeking immediate help from an insolvency practitioner can help you to reach the best possible outcome. You have seven days from the date of the order to file your response with the court, so time is of the essence.
Your insolvency practitioner can advise you on which of the following options is most suitable for your situation and help guide you through the process.
Apply for adjournment
To buy yourself more time, you can apply to the court for an adjournment to pause legal action whilst you consider your options. If the adjournment is granted you can use the time to work out a way to pay the debts or agree on a payment schedule with your creditor.
If your company owns valuable assets you may be able to use these to raise funds to pay off your debts.
Company Voluntary Arrangement (CVA)
A CVA is an agreement with the company you have an outstanding debt with that allows you to pay off a percentage of the debt over an agreed time period. This allows you to continue trading whilst paying off the debt.
When a company goes into administration, an insolvency practitioner is appointed as administrator to sell the company’s assets. All legal action is paused whilst a company is in administration.
Dispute the debt
If you have substantial proof that the debt being chased is inaccurate or unfair then you can dispute it with the court.
If you’ve received a winding up order and would like professional advice on how to proceed, get in touch with our team of insolvency practitioners here at Irwin Insolvency by giving us a call on 0800 009 3173.