A stay of execution provides vital time for a limited company to reorganise its financial affairs if it cannot afford to pay a County Court Judgment, or is unable to come to an agreement with the High Court Enforcement Officers.
If a petition has been made to wind up the company because it is officially insolvent, the court will place the interests of creditors as a whole first, so an individual creditor does not receive preferential treatment when the business is liquidated.
But there are also other circumstances in which a limited company may be successful in obtaining a stay of execution.