We help hundreds of people every week to resolve their debt problems.
“Take your first step to financial freedom today! “
Our debt experts will talk you through all of the debt solutions available. Call today on 0845 519 6093 and talk to one of our friendly debt advisors.
Madison Financial | Company Voluntary Arrangements | CVA | Company Liquidation | Business Rescue | What is a CVA? | Winding Up Orders/title>
<meta name="description" content="What is a CVA? Call and speak to one of the debt experts at madison financial today. Company Volutary Arrangement advice and help is only one phone call away."/>
<meta name="keywords" content="CVA, Company, Voluntary, Arrangement, Company Voluntary Arrangement, Liquidation, Insolvency, CVA Help, CVA Advice, Help, Debt, Chapter, Winding up orders. "/>
<link href="css/style.css" rel="stylesheet" type="text/css" />
<script type="text/JavaScript">
<!--
function MM_swapImgRestore() { //v3.0
var i,x,a=document.MM_sr; for(i=0;a&&i<a.length&&(x=a[i])&&x.oSrc;i++) x.src=x.oSrc;
}
function MM_preloadImages() { //v3.0
var d=document; if(d.images){ if(!d.MM_p) d.MM_p=new Array();
var i,j=d.MM_p.length,a=MM_preloadImages.arguments; for(i=0; i<a.length; i++)
if (a[i].indexOf("#")!=0){ d.MM_p[j]=new Image; d.MM_p[j++].src=a[i];}}
}
function MM_findObj(n, d) { //v4.01
var p,i,x; if(!d) d=document; if((p=n.indexOf("?"))>0&&parent.frames.length) {
d=parent.frames[n.substring(p+1)].document; n=n.substring(0,p);}
if(!(x=d[n])&&d.all) x=d.all[n]; for (i=0;!x&&i<d.forms.length;i++) x=d.forms[i][n];
for(i=0;!x&&d.layers&&i<d.layers.length;i++) x=MM_findObj(n,d.layers[i].document);
if(!x && d.getElementById) x=d.getElementById(n); return x;
}
function MM_swapImage() { //v3.0
var i,j=0,x,a=MM_swapImage.arguments; document.MM_sr=new Array; for(i=0;i<(a.length-2);i+=3)
if ((x=MM_findObj(a[i]))!=null){document.MM_sr[j++]=x; if(!x.oSrc) x.oSrc=x.src; x.src=a[i+2];}
}
function MM_jumpMenu(targ,selObj,restore){ //v3.0
eval(targ+".location='"+selObj.options[selObj.selectedIndex].value+"'");
if (restore) selObj.selectedIndex=0;
}
//-->
</script>
</head>
<body >
<div class="banking_enjoy_benfits_top"></div>
<div class="banking_enjoy_benfits_center">
<div class="leptop_heading_div"><span class="h2"><span class="blue"><strong>Winding up Petitions - Company Voluntary Arrangements (CVA)
</strong></span> </span>
<br />
</div>
<div class="debt_advice_new_centertext">
<strong>"We have been served a Winding up Petition. What is a Winding up Petition and what can we do about it"?</strong>
<br /><br />
These are very common questions that we hear every day! It is often because directors have left things too long and creditors have got upset with the business or the director's inaction.
<br /><br />After a rise in frequency in late 2009, in early 2010 we have seen a sharp rise in the number of petitions issued. Here we will guide you on the key questions you may have.
<br /><br /></div>
<div class="leptop_heading_div">
<span class="h3"><span class="blue"><strong>What is a Winding Up Petition?<br />
</strong></span> </span> <br />
<span class="h4">
This is the most serious action that can be taken against the company. Usually the company has breached any trust the creditor had, payment deals have failed, cheques bounced and generally the directors have not kept their word. So the creditor reacts with the "nuclear" option.<br /><br />
If a creditor elects to wind the company up, it is serious in its intent to recover the money it is owed and / or to put the company out business. <br /><br />
Remember, typically a winding up petition (WUP) costs say £1,000 to £1,800 to issue. This is because the petitioner has to put money on deposit with the court as well as paying legal fees.<br /><br />
<span class="h3"><span class="blue"><strong>What can I do? What should I do?<br />
</strong> </span></span><br /></span>
<span class="h4">
Other than pay up there are only a few other options.
<br />
<br />There may still be time to propose a Company Voluntary Arrangement if you act FAST....call 0161 713 1883x DO CALL EVEN IF A HEARING IS IMINNENT- WE MAY BE ABLE TO HELP. <br />
<br />Other options include taking legal advice on defending the petition (if is not an agreed debt for instance).<br />
<br />If the business IS VIABLE and has a good future then administration is a very powerful means to defined the company against the petition. Administration will "stay" (or postpone) the winding up petition and prevent a winding up order being made and any other legal action (except with leave of court).
<br /><br />The administrator may propose a Company Voluntary Arrangement to protect the business for up to 5 years. Or it may be sold to a new company or buyers (including you as directors).
<br /><br />If you decided to pay the debt, remember it will have increased because of the costs of the plaintiff (creditor).<br /><br />
<span class="h3"><span class="blue"><strong>What if we do not agree with the debt, or owe the debt claimed?</strong><br /><br /></span>
<span class="h4">
If the action is clearly unfair or an "abuse of court process" then you MUST take legal advice immediately. You may be able to stop the petition being advertised and indeed having it rescinded if it is an abuse. If the petition is fair and indefensible, then in due course the petition hearing will be advertised in the London Gazette and the hearing will be heard in the High Court.
<br /><br />
<span class="h3"><span class="blue"><strong>What is a Petition Advertisement?</strong><br /><br /></span>
<span class="h4">
The creditor must have advertised the petition before the High Court Hearing. It is advertised in the London Gazette or the Edinburgh Gazette for Scottish registered companies.
<br /><br />The creditor must allow 7 clear days after the serving of the petition on your registered office, before the petition can be advertised. It must generally be advertised 7 days before the petition hearing date. it is possible to stop the advert if you act fast.
<br /><br />At this stage the bank will find out and they will generally FREEZE the company's bank account to prevent any disposition or sale of assets at undervalue or other illegal acts by the directors. This can paralyse the company and stop it trading. Actually it is not legally necessary for the bank to freeze the bank account, but most banks tend to.
<br /><br />Paying the debt and then obtaining a "validation order" is generally the only way to get a new account opened and the assets released by the bank. We can advise on this process which requires an application to court and obviously not insubstantial legal fees.
<br /><br />If the petition is advertised and the company does not pay the debt, this will generally lead to the Official Receiver or a court appointed liquidator taking over to wind the company up.
<br /><br />
<span class="h3"><span class="blue"><strong>How do I protect myself from personal liability if the company is wound up?</strong><br /><br /></span>
<span class="h4">
Read our guides for wrongful trading here. Director's disqualification here and compulsory liquidation here.
<br /><br />Make very sure that all board and management actions have been carefully noted and the assets of the business have not been disposed of.
<br /><br />Make sure all management accounts, company books and records and bank statements are available and protected.
<br /><br />You MUST respond to any requests for information and records by the Official Receiver or an appointed liquidator. Failure to do is a criminal offence.
<br /><br />If you have a threat of a winding up petition ACT NOW, call our expert advisors who can quickly help you choose solutions.
</span></span>
<span class="h2"> <b>0161 713 1883</b></span>
</div>
</div>
<div class="banking_enjoy_benfits_bottom"><img src="/images/debt_adice_third_boxes_div_bottom_curve.gif" alt="a" border="0"/></div>
</body>
</html>
</div>
<div id="footer">
<div class="footer_top">
<div class="footer_top_first">
<div align="center"><span class="h4"><a href="/"><span class="blue">Home</span></a></span><br />
<span class="h4"><a href="/contact-us.php"><span class="blue">Contact us</span></a></span><br />
<span class="h4"><a href="/career.php"><span class="blue">Careers</span></a></span><br />
</div>
</div>
<div class="footer_top_second">
<div align="center"><span class="h4"><a href="/debt_advice/debt_main"><span class="blue">Debt advice</span></a></span><br />
<span class="h4"><a href="/iva_advice/bank_first"><span class="blue">IVA advice</span></a></span><br />
<span class="h4"><a href="/consolidation/loan_first"><span class="blue">Consolidation</span></a></span><br />
<span class="h4"><a href="http://debthelpcompare.co.uk"><span class="blue">Debt Help</span></a></span><br />
</div>
</div>
<div class="footer_top_third">
<div align="center">
<span class="h4"><a href="/trust_deeds/insurance_first"><span class="blue">Trust Deeds</span></a></span><br />
<span class="h4"><a href="/bankruptcy/Bankruptcy"><span class="blue">Bankruptcy </span></a></span><br />
<span class="h4"><a href="/business_res/debt_main"><span class="blue">Business Rescue</span></a></span><br />
<span class="h4"><a href="http://madisonfinancial.co.uk/blog"><span class="blue">Debt Blog</span></a></span><br />
</div>
</div>
<div class="footer_top_forth">
<div align="center">
<span class="h4"><a href="/sitemap.php"><span class="blue">Site map</span></a></span><br />
<span class="h4"><a href="/debt_news/debt_management"><span class="blue">Debt News</span></a></span><br/>
<span class="h4"><a href="/privacy_policy/debt_management"><span class="blue">Privacy Policy</span></a></span><br/>
<span class="h4"><a href="http://debthelpcompare.co.uk/blog"><span class="blue">Links</span></a></span>
</div>
</div>
</div>
<div class="footer_bottom">
</div>
<div style="text-align:center;font-family:Arial,Helvetica,sans-serif;font-size:12px;height:auto;width:950px;float:left">
Website Designed & Developed By: <a href="http://www.funkiorange.co.uk" target="_blank">Funki Orange</a></div>
</div></div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-16569349-2']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script>
</body>
</html>
Company voluntary arrangements
