In Scotland however:-
The Winding Up Petition dates from when the presentation of the Petition at the court. At the same time it is "walled". Walling means that the Notice is put up on the Court Notice board . However, the minimum debt is £1500 in Scotland.
The recipient has 8 days to lodge a defence but there is NO delay period for advertising. The Winding up petition is advertised at the same time as the service. Therefore there is no opportunity to negotiate time to prepare a company voluntary arrangement proposal document. Consequently the bank accounts arefrozen and the most likely result is liquidation.
Unfortunately many companies suffer when a winding up petition is lodged maliciously. This in effect happened to a client of ours but we managed to get the petition withdrawn and the company was saved using a CVA. Please read our winding up petition case study on this
We advise our customers in Scotland to lodge a "caveat" in both their local Sheriff court and the Court of Session. The effect of the caveat is that the court is required to notify the party who has lodged the caveat of the intention to proceed with the Winding Up. Then a Hearing will be fixed. If it is in a busy Sheriff court then the hope is that the Hearing might be a few weeks off. In a less busy court the opposite is the case. The important point is that some notice is given.
