By Tim Corfield
“You must be busy?” – I’ve heard this so many times in the last year. The fact is that insolvency numbers are significantly down.
One of the reasons was that emergency legislation was introduced from 1st March 2020 that there was a suspension on any winding up petition against a particular company being issued. This was originally scheduled to expire on 31st December 2020 and was extended to 31st March 2021. It might be extended further. Watch this space!
Creditors have therefore been prevented from taking winding up action against a debtor company. This is a court procedure and, if the order is granted by the court, would mean that the insolvency would be dealt with by the Official Receiver unless the creditors resolve otherwise.
There is expected to be a level of pent-up demand from creditors who have been unable to take such action against delinquent paying companies for the last year keen to recover the money they are owed.
Is this likely to have much of an impact? Ask me in a couple of months. In the meantime, if you have a client facing a winding up petition or simply struggling with debt don’t hesitate to call me or my team for guidance. My best contact number is my mobile – 077869 65009.