A winding up petition is a last resort method of getting unpaid debts from a corporation. The petitions work by dissolving the corporation and paying off any debts the corporation has by liquidating its assets. While it is a legitimate way to get your money back, it is also risky because you may not be a priority creditor and thus, might not get paid while other creditors do.
Winding up petitions are generally used in Britain and other Commonwealth countries.
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Find the company address and the names of the key decision makers for the company that owes you money. If you are in England or Wales, you can find these at Companies House.
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State the grounds for the winding up petition. Since winding up petitions are used for debts, you need to state the amount of the debt, the reason for it and present evidence as to its existence. This could be an invoice or a copy of a letter you sent to the company informing it of its obligation.
Explain that the debt has not been paid and you think this is the case because the company is insolvent. This latter point is extremely important--winding up procedures are for insolvent companies so you need to show the company is not just unwilling to pay you back but is also unable to.
Employ a process server to serve the petition to a director of the company or other authorised employee. If nobody is available, send the petition to the address provided by Companies House.
Advertise the petition in the "London Gazette" until the hearing. This is so that other effected parties can be made aware of its existence and support or oppose you as need be.
Tips and warnings
- Remove the petition if the company pays you what it owes.
- Consult a lawyer for finer details regarding winding up petitions.
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