The government has extended a Covid move to ensure businesses are not wound up over “relatively small” debts.
Previously, under the Companies Act 2014 creditors could issue a statutory demand for €10,000 for individual debts, and €20,000 for aggregate debts. If the company in debt was then unable to repay, it could be pursued through the courts, and result in a winding up order.
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Emergency measure extended to ensure companies are not wound up over €10,000 debtsThe single threshold of €50,000 introduced in August 2020 has been extended for another year, to 31 December 2023
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