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ARTICLE · 16 SEPTEMBER 2021

A Partial Return Of Winding Up Petitions

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The option to present a winding up petition for the non-payment of debt temporarily returns from 1 October 2021, albeit with a modified approach.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Tim Evans
Tim Evans

The option to present a winding up petition for the non-payment of debt temporarily returns from 1 October 2021, albeit with a modified approach.

The current restrictions contained in the Corporate Insolvency and Governance Act 2020 regarding winding up petitions will be partially lifted from 1 October 2021. The new measures will permit creditors to present winding up petitions against companies for unpaid debts subject to certain restrictions, being:

  1. the debt threshold for presenting a winding up petition has increased from £750 to £10,000 (this can be a cumulative total arising from multiple debts to that creditor)
  2. the creditor must request and give the debtor company 21 days to provide a debt repayment proposal before the creditor can present the winding up petition

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