How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
53108719
Type Your Law Question Here...
Buachaill is online now

If we're considering bringing a winding up order against a

Resolved Question:

If we're considering bringing a winding up order against a company for non payment (we strongly suspect they're insolvent), are we allowed to contact other potential creditors prior to bringing it to see if they want to collaborate?
English law.
Many Thanks :)
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Dear Stefan, there is nothing to prevent you contacting other creditor should you wish to bring a winding up application in relation to a company. You can collaborate with other creditors if you wish to do so. However, I would suggest that you servie your statutory demand first so as to see if the company will pay you off once insolvency is threatened. Many companies will pay off a creditor if they serve a Statutory demand as this buys them time. It is only if you have to initiate insolvency proceedings that it helps to have other creditors on board. Then you can get them to back you. However, you might find the company will pay you if you serve a Statutory Demand.
Buachaill and 2 other Law Specialists are ready to help you
Expert:  Buachaill replied 1 year ago.
2. The idea of a winding up is that all creditors get treated equally - pari passu. However, fi you serve a Statutory Demand you will get paid in full if the company has the money. So you should hold off contacting other creditors until you see if the company will pay you in full. It is only f they don't pay you in full that you should then contact other creditors.
Expert:  Buachaill replied 1 year ago.
3. Please Rate the Answer as unless you Rate the Answer your Expert will receive no payment for answering your Question.