“I have received a Winding Up or Bankruptcy Order from the courts but I believe the business is still a viable proposition and I would still like to rescue my business, What are my options ? ”

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Once things reach this stage you have fewer options, and many people will tell you the business is finished once it reaches this stage and to give up If you believe the business is viable it is important that you act quickly.

Once a Winding Up Order or Bankruptcy Order is made by the court the companies and individuals affairs are handed over to a civil servant known as “The Official Receiver”. The job of the “OR” is two fold:

1. To liquidate (turn into cash) and deal with any assets or value owned by the limited company or individual for the benefit of the unsecured creditors.

2. To investigate the conduct of directors and the performance of their duties with reference to the 1986 Insolvency Act and Enterprise Act of 2002 and take action with regard to Directors Disqualification Orders and Proceedings

Option One - Seek to have the Winding Up Order or Bankruptcy Order Annulled

If you can afford to pay the petitioning creditor(s) claim in full plus their legal costs then we can seek their consent to annul the winding up order. The Official Receiver will normally not have any objection to annulling the order and will also sign a consent form as long as his costs are paid. The ability to annul the compulsory winding up order or bankruptcy order is normally time limited and applications to annul an order of the court need to be made in a “timely” manner, normally within 30 days.

If you want to annul or cancel a Winding Up Order or Bankruptcy Order this can normally be only done with the consent of the other side and done very quickly so call 4R today.

If in doubt, call us on 0800 902 0123 for advice. It’s free

Option Two -Seek consent to take the company out of compulsory liquidation into A Company Voluntary Arrangement

In reality for most limited companies or sole traders entering compulsory liquidation there is very little value to liquidate. If the original directors want to carry on and believe the business still has a future they can seek consent from all the creditors to enter into a Voluntary Arrangement. A Company Voluntary Arrangement is put to creditors with the consent of the Official Receiver and if accepted the compulsory winding up order is annulled and cancelled and the company enters into the CVA to manage the unsecured creditor claims. The petitioning creditor may or may not support the CVA but they can be bond by a majority of 75% of those creditors who vote to agree to the proposal.

4R can help secure the consent of the OR office and negotiate and construct the right proposal to secure the support of creditors and take the company out of the OR office back into the control of the directors.

Within four weeks you could be back in control of your company trading again and out of compulsory liquidation.

Option Three - Seek consent to for an Individual to come out of Bankruptcy and into an Individual Voluntary Arrangement.

In reality for most limited companies or sole traders entering compulsory liquidation there is very little value to liquidate. If the original directors want to carry on and believe the business still has a future they can seek consent from all the creditors to enter into a Voluntary Arrangement. A Company Voluntary Arrangement is put to creditors with the consent of the Official Receiver and if accepted the compulsory winding up order is annulled and cancelled and the company enters into the CVA to manage the unsecured creditor claims. The petitioning creditor may or may not support the CVA but they can be bond by a majority of 75% of those creditors who vote agreeing to the proposal.

4R can help secure the consent of the OR office and negotiate and construct the right proposal to secure the support of creditors and take the company out of the OR office back into the control of the directors.

Within four weeks you could be back in control of your company trading again and out of compulsory liquidation.

Option Four - Purchase the Assets

If you need help stopping a statutory demand or winding up petition (and subsequent order) get in touch on 0800 902 0123 for an informal chat. Or you can fill in the simple form here Up Order Heading

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