On 1 April 2022, the temporary insolvency restrictions under the Corporate Insolvency and Governance Act 2020 expired. Creditors no longer need to serve a Schedule 10 Notice on a debtor providing it with 21 days to make payment or to provide reasonable settlement proposals before issuing a winding up petition.
Creditors can now either issue a winding up notice or a statutory demand (both of which Smith Partnership can do on a fixed fee basis) prior to issuing a winding up petition.
Minimum petition debt
The minimum petition debt has been reduced back down to £750 from £10,000.
However, it is important to note there are temporary restrictions on issuing winding up petitions (and bankruptcy petitions) for arrears of ‘protected rent debts’ incurred during the COVID pandemic. This includes action against tenants, former tenants and guarantors. For further information regarding ‘protected rent debts’ please see our article: Commercial Rent in the Pandemic.