Insolvency

Published on 11^th December 2020

Government announce three-month extension to issuing statutory demands and winding up petitions

This week (9 December) the Government has announced that the temporary restrictions placed on issuing statutory demands and winding up petitions has been extended to 31st March 2021¹ in order to relieve pressure being placed on businesses dealing with coronavirus.

To help protect businesses from insolvency a number of changes were introduced under the Corporate Insolvency and Governance Act (2020) (Coronavirus) including the restriction of statutory demands and winding-up petitions until 31 December 2020.  The now three-month extension until the end of March 2021, means winding up petitions are prohibited if the statutory demand served was between March 2020 and September 2020. 

Emma Miller, Top Service Company Director says;

“The extension of these restrictions leaves creditors with little choice but to serve statutory demands after the 1^st Jan 2021. Court delays, back-logs and the temporary change to legislation relating to winding up petitions, has resulted in some suppliers who would normally go straight from their own credit control process to the court system looking for alternatives.

We see this as a positive move in that it has given those suppliers the opportunity to see how well a specialised third-party agency can work as an alternative to court action. Suppliers have seen a reduced amount of court fees being paid whilst keeping cash coming into the business.

At Top Service we have adapted our collections methods to suit the struggles of contacting companies who are working from home and potentially on furlough – achieving great results. We advise members to look at their options for collection, take advice from their collections service provider on the best course of action and consider all options.”

Are you struggling to recover the money you are owed?

Top Service debt recovery service is operating normally. Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

[1] https://www.gov.uk/government/news/government-gives-businesses-much-needed-breathing-space-with-extension-of-insolvency-measures