17 June, 2021
Whilst the next stage of restrictions has been extended to get the country out of lockdown, the current moratorium in respect of winding up petitions against companies is still due to end on 30 June 2021.
Since the moratorium came into effect in 2020 there has been significant restrictions in presenting statutory demands and winding up petitions. As such, numerous companies have managed to continue to trade, by being able to obtain government assistance and in the knowledge that whilst debtors could obtain County Court Judgments and send out bailiffs, they have not been able to wind up companies and essentially stop them trading.
However, come 1st July 2021 this will change, and petitions can be pursued.
As such, if you know that the company has debts that are due or owing over £750 you should be looking if these can be paid off or if a deal can be done in respect of the same. If the Company has multiple debts, then it may be worth considering if an CVA (company voluntary arrangement) is worthwhile to consolidate your debts and pay a monthly amount. This will allow you to continue trading. WEw have excellent relationships with Insolvency Practitioners who would work with you and us to ensure the most appropriate action is taken.
If you receive a statutory demand or a winding up petition do not ignore it. All that will happen is that the debt will increase further with added interest and costs.
If a petition is disputed, for example, because the debt is itself disputed then there are steps that can be taken to try and resolve matters.
As a Director you should also consider if you have any personal guarantees in respect of any loans or credit agreements. In the event that the company is wound up then as a Director you are likely to be chased personally for any debts that are guaranteed personally by you.
If you wish to speak to someone regarding concerns about company debts or the presentation of statutory demands or winding up petitions, then please get in touch.
Learn more about our Insolvency department here