Validation Orders: Unfreezing Your Bank Account

If your company bank account has been frozen due to a Winding Up Petition, a Validation Order is the only legal mechanism to unfreeze it.

Why are accounts frozen?

Under Section 127 of the Insolvency Act, any disposition of property (spending money) made after the presentation of a winding up petition is void. Banks freeze accounts to protect themselves from liability.

Getting a Validation Order

To obtain an order, we must prove to the court that:

• The payments are necessary for the company to continue trading (e.g., wages, critical suppliers).
• The company is solvent or has a better chance of paying creditors if it continues to trade than if it liquidates immediately.

This is a complex legal application requiring witness statements and draft orders. Our team specialises in expedited applications.