3. I have already obtained a court judgment against a limited company, but the company still refuses to pay. Should I present a winding-up petition?
If a court judgment has been obtained and there is no appeal against the judgment or no attempt by the company to set aside the judgment (to make it invalid), there is generally no dispute over the debt. A winding-up petition may be presented 21 days after a written demand is sent. However, a number of matters should be considered beforehand:
- Is it anticipated that the company is solvent (i.e. it has financial ability to pay the debt or part of it)? If "yes", will it be commercially wiser to seek an order from the Court to execute a judgement by some other enforcement mechanism? For example, to seize and sell the company's property forthwith through a court order.
- If it is anticipated that the company is insolvent, and therefore it is unlikely that much of the debt can be repaid upon winding-up, will it be commercially wiser to negotiate with the company, or even with other creditors, in order to explore the possibility of reaching a compromise or an arrangement which may maximize the recovery?