Temporary measures brought in to support businesses from insolvency during the pandemic will be phased out from 1st October
Companies struggling as a result of the pandemic have been protected from creditor action through legislation which has been in force since June last year to prevent businesses being forced into insolvency unnecessarily.
The new measures from the beginning of next month are designed to help smaller companies by giving them more time to recover before creditors can take action to wind them up.
Temporarily, the debt threshold for a winding up petition will be raised to £10,000 and the measures will also require creditors to seek proposals for payment from a business customer allowing them 21 days to provide a response before they can proceed with winding up action.
These measures will be in force until 31 March 2022.