[layerslider id=”170″ /]
[layerslider id=”29″ /]
Book a Virtual Meeting - Free Confidential Advice
If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448..

Winding Up Petition from Company Creditors. What then?

Why might you have been served a winding-up petition, and what happens now?

A winding-up petition remains a legal notice filed by a creditor at a court. Meaning a creditor petitioned to the court, as they are owed £750 or more and have remained outstanding 21 days or more. This means the request commences the process of a liquidation via ‘compulsory liquidation‘. Directors may be exposed to personal liability issues at this point, so act swiftly.

Being the most advanced procedure that can be taken against your company, and a statutory demand often leads it. So what can be done about it? Usually, trade relationships have been strained, and trust lost. However, your company practised the best efforts to: 

  • Pay on the due date; 
  • Though your debtors have paid sluggishly; 
  • And turnover less than budgeted, affecting the cash flow of the company. 

The procedure remains a powerful method of bringing matters to a head. Creditors eventually lost patience. However, it all may become a personal issue, and therefore, the issuing of a petition remains done out of contempt.

Therefore, it is imperative to seek help from an Insolvency Practitioner swiftly! Like ‘the team at HBG Advisory‘.

Trading when my business can’t pay its creditors remains illegal if a limited company.

Creditor Moves to Wind your company up

Suppose a creditor then moves to wind your company up. In that case, they are therefore usually focused on recovering money owed to them by your company or closing it down for good. 

Directors must note the law when wishing to make payments once in receipt of a petition. If the company enters liquidation, however, payments issued while in receipt of the petition will be voided. Therefore, no payments may be issued without a validation order. 

So, ensure as a director, you, therefore, act swiftly and contact a licensed Insolvency Practitioner. Time is of the essence.

For further reading on why your company has received a winding-up order, please view’my company has received a winding up petition



To issue a winding-up petition, however, ranges between £400 and £800. Once issued, the court will therefore require a court deposit of £1,600 and £280 for filing costs.

The Winding Up Petition Procedure

Once your company creditor reaches the point of no longer believing they can chase outstanding money further. Usually, they then turn to the law of the land and request assistance from a Solicitor. Then they will commence winding your company up. (Often leverage to compel the creditor to pay, but not always.) Note, though, to consider this action. Your creditor must owe you £750 or more.

Applications (petitions) remain directed to the high court. The court then considers whether a winding-up order should be commenced on the validity and value of the claim. Do not ignore documents regarding this grave matter.

For further reading, please view Dealing with a Winding Up Petition, and what is a Compulsory Liquidation?

For further support and advice. Please contact HBG Advisory on: 0330 056 3120

Support Is Just A Call Away
Business recovery for distressed directors and limited companies.
Free advice from approachable team of advisors.
Liquidation and Bounce Back Loans
Liquidation and Bounce Back Loans
Liquidation and Bounce Back Loans
Liquidation and Bounce Back Loans
5.00 / 5
Business Recovery & Rescue.
Liquidation Specialists.
Experts in dealing with Company Debt

    Get Help Today
    1. Name: (*)
    2. Company Name:
    3. Telephone: (*)
    4. Email:
    5. Message:

    *Required Fields


    0330 056 3120

    Further Reading