Author Topic: Winding up order or High court  (Read 1114 times)

Bluey

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Winding up order or High court
« on: Mar 16, 2011, 11:03:18 AM »
Hi


I run a very small company and picked up a bad dept last year, went to court and got a CCJ against the other Ltd company, instructed the county court baliff who after 8 attempts can't get past the front door!


I've spoken to debt recovery companies who want between 8% - 10% of the value of the debt, they said they would just issue a 21 days letter of a winding up order, solicitors have quoted me £150 to do this also, can I do this myself as we really are skint now due to this debt! The solicitor also mentioned transferring to the high court (£50) as their ballifs tend to have more success getting into business premises than county court ones - is this true?


thanks


Bluey

shocksoc335

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Re: Winding up order or High court
« Reply #1 on: Mar 17, 2011, 05:46:15 AM »
Give Business Debtline a call they are free and impartial on 0800 197 6026 they will help
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James Falla

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Re: Winding up order or High court
« Reply #2 on: Mar 17, 2011, 02:02:59 PM »
Hi there Bluey
 
Unfortunately you can not issue a winding up petition yourself, you need to use a solicitor to do this. Actually the up front costs are quite a bit higher than you have been quoted as you also have to pay for the court fees which are currently £1190. These are refundable and charged to the company if you win but even so you have to fund them yourself initially. On top of that the solicitor fee will normaly range from £200-£700 so in that sense yo have a good deal on that front.
 
Even if you succeed in winding the company up, it does not mean that you will be paid the debt you owe. Any assets the company has will be shared out to all of its creditors which could be many. As such, you have to be pretty sure of your reasons for taking the action.
 
Having said this, issuing a winding up petition against a company is very serious. If they do not pay you to stop it, then their bank account will be frozen and they will pretty much be forced to stop trading immediately. As such, often just the real threat of going through this process will cause them to pay up or at least settle.
 
In terms of tansferrinf your action to the high court, this is certainly an option although even high court bailiffs will have no success if the company knows what it is doing which seem to be the case. As such, I would threaten the the winding up petition first an see where you get from there.
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