What is a closing request?
A liquidation claim (WUP) is a legal notice given to a defaulting company, which risks the company’s assets to be liquidated by the designated legal recipient (OR) if the company has not been able to pay a debt of more than £ 750 within at least 21 days. The notice is issued after the HMRC or your credit provider (your credit provider) has applied for a court order.
Remember that the WIP (WUP) system is different from the closure (WUO) method, the first phase of the process and the last phase.
What little can you do if your company gets WUP?
We recommend that you consult the key provisions of the Payment Act applicable when your company is registered under the Companies Act (2006). At the very least, you will know what to do and what not to do if the extension request proves to be more powerful than you are concerned about. Dealing with an application for closure can be very stressful for the owners, so it may be best to consult a professional and advisor to find out what they have done in this situation and how you can avoid getting into further trouble. Your first point of contact should be your accountants who will be in a better position to guide you, or represent your business once you have them.
What happens after the WUP emerges in your company?
Following the issuance of the closing notice, the London Gazette will issue an advertisement informing its lenders. Your company account freezes immediately after the ad and requires a court order confirmation to open your company accounts. While the process itself is very expensive, it does not guarantee any success in restoring your company accounts. You usually get a legal claim before a closing notice is sent, be sure to clear your debt as soon as you get a legal requirement to avoid getting a closing notice. If you do not have liquid money talk to your accountant or account manager at your affordable accounting services to find the best way to get financial access quickly.
How does your communication affect you?
Your company’s bank account transaction after closing the application for closure can be recorded and at the risk of being regulated by legal recipients (OR) and financial professionals, this could be used for you to pay that amount to the company.
Whether you plan to sell the company’s assets, legal receivers (ORs) or bidders may reject the tender and postpone the process after a thorough inspection, if the goods are found to be unimportant or sold to a related party.
Is your ‘post-application status’ legally considered?
The ‘post-application status’ which is the imposition of company assets made after the issuance of a liquidation application, is deemed void or invalid in terms of Section 127 of the Insolvency Act.
The company may restart business after notice has been issued but your authority is limited as the issuers may control any payment you make to the sellers.
Does the court allow you to claim any protection after WUP has been granted to the company?
There is a misunderstanding that the directors of an informed company may want to protect themselves entirely from debt by showing them that they are wrong or in dispute on the day of the hearing. The court may decide to dismiss your application as it has already departed and give you a closing notice.
It is important to remember that you are not allowed to discuss issues related to the application for closure on the day of the court hearing, so it may be best to resolve the issues by hand first.
What other options are you left with?
You have other options to consider once you have applied for a closure such as asking the applicant to stop the appeal while you are willing to pay the costs of the process. You cannot expect your claimant to agree to your claim if your company is already in default of payment unless your company is willing to voluntarily terminate or legally ask lenders to repay the loan under the Company’s Voluntary Arrangement (CVA).
You can also obtain an Order Order, which allows licensed legal entities to manage your company and authorize them to inspect and sell your company’s assets. During this process, your company will receive protection from legal orders and will be suspended from your company’s termination order to be issued by a court.
Your charted professional accountant is your advisor, talk to them and make sure you discuss all the options with them before proceeding with the decision.
You need to calm down!
There are many options available during the initial meetings with the applicant but once the notice is issued, things get more complicated. Therefore, it is best to consult a professional in this matter and do a personal study of the law.
