A winding up or winding-up petition is a British legal term which represents the "compulsory liquidation" of a business by its creditors. In the United Kingdom, if a business fails to pay its debts to its creditors, the creditors may join in a winding up petition to force the business to close and liquidate or sell its assets to satisfy its debts. In the United States, this is known as an "involuntary bankruptcy." If you wish to support or join a winding-up petition, follow a few steps.
- Skill level:
Gather your documentation. This includes invoices, collection letters, phone-call logs showing an attempt to collect the debt(s), letters of demand, and any other supporting documentation reflecting a debt is owed by the business, has attempted to be collected, yet remains unpaid.
Contact the solicitor or attorney filing the winding-up petition. Ask to be recorded as a supporting party or to join in the winding-up petition. If you do not know the law firm representing the creditors, look through public records for court filings of the winding-up petition to find the names of creditors already joining the petition. Contact one to find the solicitor's name.
Join the winding-up petitioning parties. Send copies of your documentation to the solicitor's office. Receive, sign, and return any documents from the solicitor's office in support or to join the winding-up petition.
Tips and warnings
- Formal support for and/or joining a winding up petition is not a guarantee of payment of the debt(s). The business' compulsory liquidation will first satisfy principal creditors and ancillary creditors second if such proceeds are available.
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