Although the restrictions on debt collection have been mostly lifted from October 1 2021, some limits remain on the use of Winding-up petitions by commercial landlords in respect of rent arrears until March 2022.
- Petitions can only be sought on debts exceeding £10,000 compared with the pre-pandemic threshold of £750.
- Creditors must give debtors 21 days to propose resolutions.
- WUPs cannot be used for pursuing commercial rent arrears but….
…the sting in the tail is that debtors will still be able to seek county court judgements to try to recover commercial rent arrears.
As always, we advise businesses in difficulties to manage their cash flow and to seek help if you are in difficulties.
You can download our free cash management tool here https://www.linkedin.com/smart-links/AQG7fCQTtXx4Zw/37139976-4f42-454f-aff5-75ae4be992c7
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