13 Sep 2021 / Back to latest updates

Winding Up Petitions Update – September 2021

Last week the Government announced that they would be introducing temporary changes to the Law on Winding Up Petitions against Companies.

Currently, the Government has restricted Creditors’ use of Statutory Demands and Winding Up Petitions (which are used to liquidate a Company) until the 30 September 2021.

The Government’s announcement last week will introduce the following new temporary rules for Creditors:

• Petition debt limit will raise from £750.00 to £10,000.00 to protect small businesses;
• The Creditor has to provide 21 days to the debtor for their payment proposals before issuing the Winding Up Petition; and; 
• A Creditor is unable to use a Petition for the purpose of collecting Commercial Rent arrears which matches the Government’s commitment to protect Commercial Properties from eviction.
• The above rules will be in force from 1 October 2021 to 31 March 2022.

Whilst this is welcome news for businesses and Creditors that have bigger debts it still seems that Landlords are not being helped by the government.

Should you personally or commercially have a debt that is above £10,000 and your debtor has been non responsive so far, then please contact our experienced Legal Team for further information and a quote of our fees.