using winding up petitions as a debt recovery tool
DESCRIPTION
Each supplier of goods and services wants to receive payment on time. But sometimes the supplier has to look for smart option to recover his debt. A supplier has option to apply to the court to wind up a company if it fails to pay debts amounting to more than £750.Likewise, he has to fill in certain forms, and deposit certain fees. It is always important for the supplier to decide if the winding up petition can be used as an effective tool to recover the outstanding debt.TRANSCRIPT
If the winding up petition is successful, the defaulting
company will be put into liquidation. However, while
filing a winding up petition, the supplier has to
prove that the company cannot repay the outstanding debt.
Likewise, he has to fill in certain forms, and deposit certain fees. It is always important for the supplier to
decide if the winding up petition can be used as an effective tool to
recover the outstanding debt.
