Today’s the Day!

Restrictions on the presentation of winding up petitions are largely no longer in force from today.  There are some exceptions, particularly for commercial landlords with unpaid rent, but on the whole a creditor is free to present a petition subject to the new provisions introduced via the Corporate Insolvency & Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) Regulations 2021.  As from today the threshold for presentation of a petition is £10,000 and a creditor must give written notice to the debtor seeking proposals for payment.  A debtor has 21 days to make a proposal which is to the satisfaction of the creditor.  If there is no settlement the petition can be pursued on expiry of the 21 days.  These provisions are due to expire on 31 March 2022.

If you are at risk of being presented with a 21 day notice and a petition being pursued then early advice is key.  The 21 days afforded to a creditor is an opportunity to negotiate settlement if possible and if not then to look at the best options available before a winding petition is presented.

Contact Kathryn Maclennan on 01254 268791 / 01204 527777  Email