New Creditors Winding Up Petition Guidance: What It Means

After 3 years of no Creditors’ Winding Up Petitions, we are good to go.

Or are we?

Yes, but with some caveats. From Monday 17 April 2023, winding up petitions may be presented subject to the following criteria:

Petitions must be in the new form; and
The debt must arise from a court judgment, decree or similar court order;
and
The petition must be grounded on a formal demand made on or after 13 March 2023.

This is good news, although the requirement for a Court Order will frustrate businesses seeking prompt resolution. Businesses will of course be best to seek Summary Judgment where appropriate.

It also effectively prevents the issuing of a Statutory Demand as an early inducement to pay, as a Court Order is required even at this stage.

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