Q&A. Winding up petition

Q. I am the owner of a company and I have been threatened by a creditor that it is going to issue a winding up petition. What can I do? I dispute that I owe this company any money.

A. It is important that you seek legal advice straight away. If a winding up petition is issued this will have a drastic effect on the business and it is likely that your bank will freeze your company's bank account. This will mean that unless you get a Court Order to allow the you to operate the account no payments will be made out of the account.. If there is a genuine dispute then there is a possibility of obtaining an injunction preventing the issue of a winding up petition. The courts will not take kindly to someone threatening to issuing a winding up petition where there is a dispute.

Kally Singh, partner and head of Insolvency

*This article was previously printed in the Peterborough Evening Telegraph