FREQUENTLY ASKED QUESTIONS ( FAQ )
Insolvency is perhaps one of the processes in life individuals fear. People frequently ask questions (FAQ) about it. The subject is a minefield
and therefore, only licensed insolvency practitioners should give advice.
We list below the most asked questions by prospective clients. If you require further clarity, please contact John Waller on 0800 612 5448 who
will guide you further.
For further information, please click on the questions below, and you will be directed to the relevant page with the answer.
Please click on the highlighted blue frequently asked question (FAQ).
What about the people to whom I owe money (creditors)?
Most will be fairly pragmatic about the whole thing, as it’s unlikely they will see much of a return of their debts. They are entitled to attend the creditors meeting, but unless the directors conduct fraudulent or neglectful of their fiduciary duties, they then cannot take any further action.
Winding up Petition Definition
A winding up petition issued by a creditor is a legal final demand notice to coerce payment or force the debtor company to enter compulsory liquidation. The petition is presented in a court in which a judge hears the petition.
A Winding Up Petition means the court is ‘petitioned’ to ‘wind up’ a debtor company having failed to pay the petitioning creditor.
If the debtor company is unable to pay? Then the company is wound up, therefore appointing the official receiver to liquidate its assets.