Don’t Want To Go To Court Over Debt? Issue A Winding Up Order Instead
If one of your business customers owes you money and you don’t want to go through all the hassle and expense of taking them to county court and through a long litigation process, then a winding up order could be a better alternative.
Winding up orders can be used when a company owes a debt over £750. So for small as well as large debts, a winding up order can be a more efficient and cheaper way to recover money owed. For example, if your business is owed money amounting to 50,000, the fees involved could see £15,000 of that money being eaten up in court and solicitors fees if it is contested.
A winding up order on the other hand will cost considerably less at between £400 and £800 plus court and filing fees which could add a further £2000.
The use of a winding up order while often effective should only be taken as a final option when there is no confidence that the debt will be repaid. There are also certain conditions which need to be followed before issuing a winding up petition to ensure that it is valid.
If you require further information on this or any other issues related to debt recovery, contact our experts today.