Business Debt Help

Winding-Up Petition

Urgent, confidential help if a creditor is threatening or has issued a winding-up petition against your company.

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A winding-up petition is the most serious form of legal action a creditor can take against a company. It asks the court to compulsorily liquidate the company on the basis that it cannot pay its debts — and if granted, it ends with the company being closed down.

If your company has received a winding-up petition, or a statutory demand that could lead to one, you must act immediately. The window to protect the business is short, and once the petition is advertised the consequences accelerate quickly.

What a winding-up petition means

A creditor owed £750 or more can petition the court. Once the petition is presented and advertised in The Gazette, banks typically freeze the company’s accounts, and any disposal of assets after presentation can later be set aside.

From advertisement to the court hearing is often only a matter of weeks — so the time to respond is now, not later.

Your options to respond

Depending on the circumstances, options can include paying or genuinely disputing the debt, negotiating with the petitioning creditor, applying for an adjournment, proposing a CVA, or placing the company into administration to trigger a protective moratorium.

Which option is right depends on whether the business is viable and how far the petition has progressed. We’ll tell you honestly and quickly what can still be done.

Why acting fast is everything

The earlier you take advice, the more options you have. Before a petition is advertised, a rescue or orderly solution is often still achievable; afterwards, the choices narrow rapidly.

If you have received any demand or petition, the safest next step is a free, confidential call today.

Frequently asked questions

My company has a winding-up petition — is it too late?

Not necessarily, but you must act today. Options such as administration, a CVA, paying or disputing the debt, or negotiating an adjournment may still be open — but they narrow quickly once the petition is advertised and the hearing approaches.

Will my bank account be frozen?

Usually yes. Once the petition is advertised in The Gazette, banks freeze company accounts to avoid making void payments. This is one reason acting before advertisement is so important.

Can I stop a winding-up petition?

Sometimes — by paying or genuinely disputing the debt, agreeing terms with the creditor, securing an adjournment, or entering a process that creates a moratorium. The right route depends on your circumstances.

What is a statutory demand?

A statutory demand is a formal written demand for payment, often a precursor to a winding-up petition. If you receive one, treat it as a clear warning to take advice before it escalates.

What happens at the court hearing?

If no resolution is reached, the court can make a winding-up order, placing the company into compulsory liquidation under the Official Receiver. Avoiding that outcome means acting well before the hearing.