Liquidation and debt enforcement: a practical guide | Practical Law

Liquidation and debt enforcement: a practical guide | Practical Law

This practice note reviews the advantages and disadvantages for the creditor of starting winding-up proceedings against a company and examines the potential consequences of doing so. It explains why serving a statutory demand or issuing a winding-up petition may not always be an appropriate means of enforcing a debt. It also sets out alternative courses of action that may be available to a creditor of a company.

Liquidation and debt enforcement: a practical guide

Practical Law UK Practice Note 3-383-1159 (Approx. 26 pages)

Liquidation and debt enforcement: a practical guide

MaintainedEngland, Wales
This practice note reviews the advantages and disadvantages for the creditor of starting winding-up proceedings against a company and examines the potential consequences of doing so. It explains why serving a statutory demand or issuing a winding-up petition may not always be an appropriate means of enforcing a debt. It also sets out alternative courses of action that may be available to a creditor of a company.
Note: The remaining temporary measures that were introduced in response to the COVID-19 pandemic expired without renewal on 31 March 2022. See Legal update, Remaining temporary insolvency measures will expire on 31 March 2022.
Other restrictions on winding-up and bankruptcy petitions concerning COVID-related arrears of commercial rent continue to apply under the Commercial Rent (Coronavirus) Act 2022. See Practice note, COVID-19: Commercial Rent (Coronavirus) Act 2022: rent arbitration and the implications for enforcement.