If your company’s bank account is frozen, this may be the result of your bank receiving notice that a creditor has issued a petition for a winding-up order against your company in respect of an unpaid debt.
In these circumstances, an Insolvency Practitioner will look to clearly understand the financial performance of your company’s business and the company’s ability to generate income from its trading or from its assets. An insolvency practitioner will liaise with HMRC and seek their agreement to postpone the proceedings pending their agreement of an alternative way forward for the company.
Even if a winding up petition is already in place, an insolvency practitioner can arrange representation at court for you and in appropriate circumstances help you obtain a validation order so that if the company has got money in the bank, this money could be used to settle the petition debt or deal with its creditors.
The court can be asked for permission for that money to be released if the money is held in a frozen bank account as a result of the winding up petition having been issued. Beyond that, if there are doubts about the company’s ability to trade profitably in its current form, it might be possible to utilise an alternative insolvency process, perhaps Administration or CVA which would allow the business to go forward with a different structure and to avoid compulsory Winding up.
Here at Chamberlain & Co the initial telephone call or meeting is free of charge as both parties need to familiarise themselves with the situation. Beyond this, if we need to provide ongoing advice perhaps with a view to avoiding insolvency altogether, this would be on a fixed fee basis. Other insolvency processes would be assessed on a case by case basis.