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If your company has been served with a winding up petition and you continue to trade, there is a chance that you may be accused of fraudulent trading. You should learn the factors that differentiate wrongful trading and fraudulent trading. They are viewed separately in a legal sense, and the penalties differ vastly.
This applies to a business which, despite being insolvent, continues to trade. This is usually because the business owner believes that things will get better, and although this is a misguided view, it is not considered to be fraudulent
This is a far more serious accusation and implies that the owners are carrying on with their business with no intention of paying off their debts. This is usually discovered during the winding up process, once the liquidator examines the trading records. In this case, the liquidator will require substantial evidence before the court will proceed with the order.
If you have been served with a winding up petition, please speak to our team before an order is put in place. We can help you to save money, and even protect you from being accused of wrongful trading. Call us on 0800 009 6106 and we’ll be happy to help.