Changes in rules regarding Statutory demands and Winding up petitions
20th April 2022
As part of it’s response to Covid-19 and providing the support many businesses needed during the Covid-19 pandemic, HM Government arranged for temporary changes to the rules regarding statutory demands and winding up petitions.
In essence, the creditor would need to be owed in excess of £10,000 for them to be able to validly serve a winding up petition following a statutory demand.
This is different to the rules pre-covid that allowed such a step to be taken if the debt was £750 + (if a company) or £5000 + (if a individual). The temporary measures for the coronavirus pandemic were not renewed on 31st March 2022 and the threshold returned to pre covid levels on 1st April 2022.
However, the Government did make the decision to keep some restrictions on the commercial rent arrear process.
If you require any further information regarding Statutory demands and Winding up petitions or any aspect of Debt Recovery, Insolvency, Dispute or any other Corporate / Commercial advice please contact us to speak to our experts