A compulsory liquidation will most frequently start with a statutory demand or county court judgement (CCJ) from a creditor for money owed. Left unanswered or undisputed, that creditor may submit a winding up petition to the court. It requests that a winding up order be made to liquidate or ‘wind up’ said company, as they are insolvent. It is through compulsory liquidation and the appointment of an official receiver that the assets of a company are forcibly realised and distributed to the creditors to pay debts. Once winding up is complete, the company will be dissolved.
Stop Compulsory Liquidation
Attempts can be made to stop compulsory liquidation. The bid made though, depends entirely upon how quickly advice is sought from a licensed insolvency practice (such as us).
If you contact us within seven days of a winding up petition it is possible to:
- Within 7 days of the winding up order, an application can be made for the court to dismiss (rescind) the winding up order if the court did not have all the relevant facts when making the winding up order.
- Within 4 weeks of the winding up order, submit an appeal against it. The court can dismiss (rescind) the winding up order or otherwise modify its decision.
- Any time after a winding up order is made, liquidation can be stopped (stayed), permanently or temporarily, on the application of the liquidator, the official receiver, a creditor or a shareholder.