Fc term lenders liquidating
Unfortunately, the chances of getting a petitioner to agree to a CVA during this 7-day period are slim, especially if the CVA proposal is not drawn up by a professional.
Having a CVA proposal created and introduced by a licensed insolvency practitioner is the best way to increase the chances of an agreement being reached.
It results when HM Revenue & Customs or another creditor sends a winding up petition (WUP) to the court after the insolvent company fails to repay a debt of more than £750 which has gone unpaid for at least 21 days.
Upon a Winding Up Petition being advertised, a company’s bank account will typically be frozen meaning business is immediately halted.
You have a relatively short window of just seven days to mount a challenge or else pay the amount owed.
Still, there are preliminary measures you can take to minimise the possibility of directors being brought under post-liquidation scrutiny.However, there is a short period of time during which you can take action to prevent the order from being issued in the first place.A Winding Up Petition (WUP) is the first stage of the process, and it is here where you can challenge the petition before it goes any further.After liquidation the Official Receiver (OR) is given the task of investigating all actions taken by the directors during the time the company was trading insolvent.If evidence of wrongful trading is found the directors could be held personally liable for some of the company debts, or may even be banned from acting as the director of any company for up to 15 years.
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Although the possibility of a pre-pack administration is not possible after a WUP has been issued, administration can still be a highly useful tool during this time.