The Corporate Insolvency and Governance Act 2020 (“CIGA”) put a number of temporary provisions in place designed to help companies that were financially affected by the Coronavirus pandemic, including the suspension of statutory demands and winding up petitions.
Whilst statutory demands returned a few months ago, temporary restrictions enforcing an increase in the debt threshold to £10,000 and a requirement to contact the debtor at least 21 days prior to issuing the winding up petition to seek payment proposals have been in situ since.
However, in line with the general lifting of covid restrictions in England and Wales, it has been confirmed that the temporary restrictions imposed on winding up petitions will cease on 31 March 2022. This means that from 1 April winding up petitions can be issued again in the normal way for debts over £750.
If you are concerned about receiving a statutory demand or winding up petition, or if you are a creditor who requires advice about your enforcement options, please contact us here and we will be more than happy to discuss the matter further.