Winding up order

[john.readman]

A company owes me a considerable amount of money and does not pay Can I place a winding up order on the company

[Hgrove]

I doubt it, unless the company's debts far outweigh its assets.  Also if that company was wound up, you could find you are way down the line of priority among all its creditors - unless you are the Crown/Taxman/VAT man in which case you'll be able to help yourself first, leaving the crumbs to suppliers, followed by ordinary customers.   Perhaps you could take them to the Small Claims Court?  It depends on how much they owe you.

[Maud]

The above answer is just rambling, I'm sorry to have to say. If a company owes money of any amount any creditor can ask the Court to wind it up. The Court appoints a liquidator who uses the company's assetts to pay creditors, after which the company is dissolved and struck off the Register of Companies. You simply issue a petition (by a straightforward form) for wind-up to the Court, the fee is �180 plus additional money for the Official Receivers deposit the amount of which the Court Office will tell you after they have read your petition.

[Harley]

Sorry, but you make it sound very simple. You cannot use the Insolvency Rules to collect debts,people do it and it is an abuse of the system. First of all you have to issue a Statutory Demand and have it served on the debtor or post it to it's Registered Office. If there is no defence then you can go for a Winding Up Petition but you will need a Solicitor to act for you as it is a Court matter. The deposit is at least �650 and if the debtor is proven to have no money there is no guarantee of getting your deposit back. It is usually Customs & Excise or the Inland Revenue who issue these proceeedings as they want them out of business to stop them trading.The defence to a Stat Demand is very simple...I do not owe the money..take me to Court ..the debt is in dispute and worse the debtor can sue you for the cost of defending the stat demand as the debt is not proven.Having said all that a Statutory Demand is in itself a fairly strong weapon and may force payment from a less knowledgeable debtor. You can download the document for free but make sure you use the right one.They differ for companies and individuals and whether you have judgement or not.

[Maud]

A petition for winding-up is a common and usual commercial practice to force payment of a debt. It is suitable if the debt is �750 or more. A Statutory Demand is one precursor to a petition for winding-up and is free of cost by way of a prepared form which most firms complete themselves. The completed Statutory Demand should be served personally on the debtor, not by post. Failure to comply with a Statutory Demand is an automatic ground for winding-up. They are not in the least bit the for the exclusive use of the Customs or Revenue, and are there and easily and readily available for all persons and firms to use. The "holding defence" to which you refer is well understood to be an admission that in actual fact the debtor has no defence. There is no minimum deposit of �650. The Court fees are as I have set out. The employment of solicitors is not absolutely necessary up to and including the issue of the petition, although, of course, it is advisable where individuals or firms have no experience of doing elementary legals themselves. All of this is based upon the supposition that the debt that is being pursued is bona-fide and that the debtor has the means to pay. The Statutory Demand should include all costs up to and including the issue of the petition, but be accompanied by a "Without Prejudice" letter saying what amount will actually be accepted in full and final settlement which should, of course, exclude costs not yet expended.

[Harley]

The deposit is �500 plus costs

[Maud]

No, the Official Receiver deposit has recently gone up to �620. There are no other costs beyond the Court Fee of �180, about which notification has been received that it will rise in the New Year. If the debtor is solvent and the claim is bona-fide then all should be returned, but 99.95% of private intentions to issue a petition are settled before the actual issue of a petition. It is a very effective threat.  

[Harley]

Maud, may I quote your answer of 14/10 "There is no minimum deposit of �650" glad you now agree. I take it you also agree that if the debtor has no assets that the deposit will not be refunded.

For clarity. Issue a Stautory Demand,it's free! See my last comment 14/10.

[Maud]

The current Court fee is �180 and the current Receiver deposit �620 as I have said. A winding-up petition is against a registered company, not individuals, and is one of the most effective ways of persuading a company that is solvent and trading to pay up. If a company is worthless then it is silly and pointless to waste time issuing Statutory Demands and to throw good money after bad in compulsory winding up - far better to go after individual directors, but that is for another discussion! I conclude by just highlighting your reference to posting a Statutory Demand and reiterate that to be valid it should be served personally, not posted.

[ang123]

Thanks for that info....but bit confused about the costs....are they �160 or over �600???