Pursuant to the Insolvency Act 1986 a company's liquidator can recover any of the company's property that is transferred after the date on which a winding up petition is issued. This is because s.127 makes any disposition of property (such as land, money and goods) in the period after issue of a winding up petition void.

Care should therefore be taken when pursuing a company for a debt. If you issue a winding up petition against a company which subsequently pays you money, there is a danger that another creditor might elect to take over the winding up petition and push on to get a winding up order against the debtor. The effect of this is that, unless you fall within some tight exclusions, the liquidator can force you to return the money that was paid to you after the issue of the petition. Therefore, wherever possible, you should ensure any winding up petitions are dismissed as soon as possible after payment is received.

A similar problem can arise where part payment of a debt has been made after issue of your petition, but the debtor fails to pay the remaining debt and so you decide to push ahead with the winding up order. In this situation you will need to consider the benefits of pursuing the winding up order against the risk that the pay payment will be reclaimed by the liquidator.