My Business Can’t Pay Its Creditors
If your limited company cannot pay its debts
If your business is a limited company, it can be liquidated (‘wound up’) if unable to its debts.
The people or organisations to which your business owes money (your ‘creditors’) can appeal to the court to help repay their debt.
The creditor may either:
Reacting to a court judgment
You must respond to a court judgement within 14 days.
To do so, requires you to either:
Failing to deal with the judgement within 14 days means your creditors can apply to the court to instruct bailiffs.
Also, creditors can apply to wind up your company with a winding up order if your assets are not worth enough to repay your debts.