Help My Bank Account is Frozen.
Dealing with a frozen bank account due to a winding up petition can be daunting, but understanding your options can make the path to resolution clearer. By delaying the advertisement of a petition, obtaining a validation order, or implementing a Company Voluntary Arrangement – CVA, you can regain control over your financial situation and continue business operations.
How a Validation Order Can Open Up a Frozen Bank Account
If your bank account is frozen due to a winding up petition, obtaining a validation order from the court can be a viable solution.
A validation order is a court order that allows certain transactions to occur even after a winding up petition has been presented. This can be crucial for maintaining essential business operations.
Benefits of a Validation Order
- Access to Funds: You regain access to your bank account for approved transactions.
- Continued Business Operations: Essential business activities can proceed, minimizing disruption.
- Improved Creditor Relations: Showing commitment to resolving issues may improve relations with creditors.
How a Company Voluntary Arrangement (CVA) Can Unfreeze a Bank Account
A Company Voluntary Arrangement is another effective tool for businesses facing insolvency pressures. Here’s how it can assist in unfreezing your bank account: A CVA is a legally binding agreement between a company and its creditors to restructure debt and improve the company’s financial standing. It allows businesses to continue operating while repaying creditors over time.
Advantages of a CVA
- Debt Restructuring: A CVA allows for the restructuring of debt into manageable payments.
- Business Continuity: The company can continue trading while addressing financial issues.
- Creditor Approval: With creditor approval, the CVA can serve as an alternative to liquidation, preserving jobs and business operations.
So get in touch with Fastspeed Legals today, we can assist you with your Winding up Petition by requesting a delay of your petition being advertised and organise for representation at your Court Hearing to give you more time. We will oversee to unfreezing your company bank account and assess your business for a Company Voluntary Arrangement. However If you were looking at how to safely close down your company, we can assist you with a Company Voluntary Liquidation.