Insolvency and debt recovery specialists

Insolvency & Law successfully obtained winding up orders whilst the Government's insolvency restrictions were in place

Last month, the Government lifted the insolvency restrictions introduced to combat the Covid-19 pandemic. In particular, the repeal of Section 10 of the Corporate Insolvency and Governance Act 2020 (CIGA) should please creditors. Creditors were still able to obtain winding-up orders. However, Section 10 of the act compelled them to: Only pursue debts of £10,000…

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End of temporary insolvency measures

Creditors are now free to present a winding-up petition on a debtor company that owes over £750 following the lifting of the government's temporary CIGA 2020 insolvency measures

Last week, the Government withdrew the temporary insolvency measures introduced two years earlier to support businesses during the Covid-19 pandemic. Creditors could obtain winding-up petitions under the temporary legislation (enacted as part of the Corporate Insolvency and Governance Act 2020). However, the debt threshold for winding-up petitions increased to £10,000 and creditors were compelled to:…

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Laws for winding up orders need more clarity

New measures for the issuing of winding up petitions unclear

Entrepreneurial small business owners should be overjoyed with Government plans to increase the debt threshold for winding-up petitions to £10,000. The move is in harmony with new protections and laws designed to support businesses. Temporary measures introduced last year under CIGA 2020 will be replaced from 1 October to 31 March 2022. Subsequently, more debtor-friendly…

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Creditors vulnerable without winding-up petitions

Creditors are vulnerable without statutory demands and winding-up petitions

The UK Government’s decision to extend the temporary restrictions on statutory demands and winding-up petitions for Covid-19 related debts until 31 December 2020 offers some reprieve for hundreds of thousands SMEs. However, statutory demands and winding-up petitions are essential to debt enforcement and insolvency proceedings. Consequently, it’s difficult to fathom how prohibiting creditors from engaging…

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Why statutory demands and petitions are essential

It can be argued that by restricting the filing of statutory demands and winding up petitions for Covid-19-realted debts, the Government has targeted all industry sectors with a blunt instrument. Covid-19 did not adversely affect every business in Britain. Indeed, many continued to operate throughout the lockdown period, and some of them thrived. We need…

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Congested courts the only option for debt enforcement

While the restricted use of statutory demands and winding-up petitions will provide a lifeline for many struggling companies, the move also forces creditors chasing overdue debts into an already overburdened court system. As it stands, the only remedy to enforce payment of a debt is through a High Court enforcement officer. You may send out…

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