New measures are coming into force on 1 October 2021 and will remain until 31 March 2022.
At present there are restrictions in place for both statutory demands and winding up petition which will come to an end on 30 September 2021. Prior to 1 October 2021 any statutory demand served before this date cannot be relied upon to seek the winding of a debtor company, unless there are exceptional circumstances. The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) Regulation SI 2021/1029), will put new procedures in place even though the Government is lifting these restrictions at the end of the month.
As of the 1 October 2021 the restrictions for serving of statutory demands will be lifted.
At present the minimum debt for a winding up petition is £750, but as of 1 October that will increase to £10,000.
An important point to note is that a winding up petition cannot be presented for failing to pay commercial rent due to impact of coronavirus. This is in line with extension that has been provided for forfeiting commercial tenancies. These measures will remain until 31 March 2022. Prior to a winding up petition, the debtor will receive from the creditor 21 days to make any payment proposals.
Should you require any legal advice in relation to the above, please contact us on 01706 671434.
This update is for information purposes only and should not be relied upon as a substitute to legal advice and does not amount to legal advice.