Threatened By HMRC With A Winding Up Petition And Want To Liquidate Fast?
Fast Liquidation Fact
Have you been threatened by a creditor, such as HMRC, with a winding-up petition or to take enforcement action against your company and want to liquidate the company fast? It is still often possible to liquidate the company yourself through a creditors voluntary liquidation. A company can be placed into liquidation within around 21 days in some cases, but it is not guaranteed.
What Is A Winding-Up Petition?
If your company has been threatened with a winding-up petition, this is a legal process that can lead to the compulsory liquidation by court order.
A winding-up petition is most commonly completed by a creditor who is owed money by your company, such as HMRC.
It is a court dominated procedure that closes down the company. A government civil servant known as the Official Receiver at the Insolvency Service is appointed in the first instance as the liquidator.
Why Liquidate Fast?
If your company has received a winding-up petition, there are several reasons why acting quickly to liquidate your company if it cannot be saved in its current form and is insolvent:
Loss Of The Company’s Trade
Unlike with a creditors voluntary liquidation, the process of placing the company into liquidation is controlled by the court, not the directors.
Once a winding-up petition has been filed with the court and served on the company, no further trading and sales of company assets are usually possible in light of the restrictions from Section 127 of the Insolvency Act 1986. Certainly not without court permission through what is known as a validation procedure, which can be a lengthy, involved and complex application to the court.
Director Loss Of Control
It is therefore usually impossible to trade as the company’s bank account will tend to be frozen once notice of the petition hits the London Gazette and is published. If the directors wish to trade part of the business in the future, which remains viable, this can be hampered accordingly.
However, if you choose to liquidate voluntarily, you can appoint a liquidator of your choice. Whilst such a liquidator cannot act on your instruction, it may help you get on with the process and provide you with someone to take advice from.
Perception Of The Directors
It may help demonstrate that a director is acting responsibly to resolve the company’s position by being proactive and not just waiting for a creditor to wind it up.
Resolving The Petition
If the winding-up petition has already been filed against you, an insolvency practitioner can help negotiate with creditors or even apply to have the petition dismissed if you take the necessary steps to resolve the debt.
How To Liquidate Fast
If you decide that liquidation is the best option, you will need to consult with a licensed insolvency practitioner. At Fast Liquidation, we can guide you through the process and potentially liquidate your company fast.
