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.
Be Warned! You will only get your fees refunded if the company has funds to pay them. Even if you are the petitioning creditor, you may not be given any priority on any balance distributed by the official receiver. Therefore, you may not get all or any of the money you are owed.
