Compulsory Liquidation

Is your debtor a business that cannot pay their debts? 

You could consider applying to the court to close the company, also known as ‘winding-up’ or compulsory liquidation.

To proceed with a winding-up petition you must:

  • be owed over £750
  • be able to prove that the company cannot pay you

If your petition is successful the court will put an official receiver in charge of the liquidation, who will sell any assets and contact all creditors.  They will:

  • Sell the company assets
  • Settle any disputes
  • Collect in any money owed to the company
  • Distribute any credit balance on the account to the creditors
  • Copy of county court judgment if already obtained: or
  • Copy of statutory demand

If you do not have all of these please tell us as it may have an impact on what options are available to you.