The Covid Pandemic has been tough on some business and the Government has done everything it can to help protect these business with furlough, grant schemes and the ban on winding up petitions.
All of these schemes are slowly and surely being removed with the latest change to come on 1 October 2021 when winding up petitions are allowed again although it will not be a total free for all because there some limitations still in place:
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Businesses will be protected from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding up petition to £10,000 or more.
- Creditors are required to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding up action.
I have a lot of clients who have been champing at the bit to wind up nefarious customers that they have been struggling with. However, I do not envisage a frenzy of petitions in the early days of this relaxation of the restrictions. It is likely that businesses will still want to work through these tough times together and reach a mutually acceptable solution.
Temporary measures brought in to support businesses from insolvency during the pandemic will be phased out from 1 October.
https://www.gov.uk/government/news/end-of-temporary-insolvency-measures
