www.company-debt.co.uk

[Philip01]

Can you give me any advice? I want to issue a winding up petition against another business who owes me money do i have to obtain a county court judgment first?

[Graham Wilson]

Hello Philip01 and welcome to the forum.

The bottom line here is no. There is no requirement for a County Court Judgement (CCJ) to be obtained first. However, if you have issued a CCJ and it remains unpaid, this will give you a good arguement for applying to the court for the winding up petition to be issued.

[Derek Cooper]

Hello Philip01

Graham is quite right, you do not have to obtain a CCJ before applying to the court for a winding up petition against another business. However, under the terms of the Insolvency Act 1986 you must be able to show the court that the company is unable to pay its debts as they fall due.

There are three tests of this:
1 - The company is unable to satisfy a statutory demand within 18 days
2 - The company has an unsatisfied CCJ against it
3 - It is proved to the satisfaction of the court that the company is unable to pay its debt.

Given this requirement, if you have first issued a CCJ which remains unpaid, this will give considerable weight to your argument that the court should grant your application for a winding up petition.

[Philip01]

Thanks for the advice

It sounds as though it might be sensible to issue a CCJ or statutory demand first of all. Its just I think the owner of the business would respond more "positively" to a winding up petition....

[Graham Wilson]

You could threaten a winding up petition Philip01. The threat of this type of action is sometimes all it takes.