Received a Winding-Up Petition? What Next?

The first thing you that should do after receiving a winding-up petition is to contact a professional insolvency practitioner immediately.

Don’t ignore it, or delay responding.

A qualified expert can assess your situation before advising on next steps – helping you to avoid the permanent closure of your business by an order of the court.

How long have I got to protect my business?

There are always steps you can take, regardless of which stage a winding-up petition is at.

Typically, winding-up proceedings are fast-moving.

Here’s how they unfold:

Day 1

A winding-up petition is served on a company at its registered office.

It will include details of the debt owed together with the creditor’s information

Days 1 to 7

Options include:

·       Repaying the debt in full

·       Disputing the debt

·       Negotiating a settlement or payment plan with the creditor

·       Entering into a company voluntary arrangement (CVA)

After 7 days

If unresolved, the petition can now be advertised in The Gazette.

Once advertised, this can result in:

·       Frozen business bank accounts

·       Irreparable reputational damage

·       Additional creditors joining the petition

·       Reduced legal options

After 6-8 weeks

A High Court hearing is scheduled to decide whether to grant the winding-up order.

The exact timing varies and depends on the current backlog of cases at the court, whether any adjournments have been requested, and if a settlement has been negotiated and accepted by the creditors

 

If a winding-up order is granted, the official receiver – a civil servant employed by the Insolvency Service – acts as the Government liquidator, and is responsible for overseeing the company’s affairs.

They can also investigate the conduct of directors to ensure no wrongdoing has been committed. 

What is a winding-up petition?

If your company has received one but you’re unsure what a winding-up petition actually is, let’s clarify that now.

A winding-up petition is a formal legal request submitted to the High Court asking it to close down a company that cannot pay its debts.

A judge decides whether to approve or dismiss the request.

There are two major conditions that must be met before a creditor can present a winding-up petition to the courts for approval:

  1. Creditors must be owed £750 or more by the company they wish to see wound-up
  2. Creditors must be able to prove to the courts that the company in question is unable to pay the money it owes

Although creditors often serve a statutory demand first (giving the company 21 days to pay), this is not a legal requirement, and a winding-up petition can be filed without any prior statutory demand being issued.

If the court approves a petition, it issues a winding-up order that immediately places the company into compulsory liquidation, stripping directors of control and bringing trading to an immediate halt.

Who can file a winding-up petition?

According to the Insolvency Act, petitions can be filed by any creditor owed money, but they are not the only eligible parties.

Besides creditors, the following groups may also initiate a winding-up petition:

  • HMRC: Often files petitions for unpaid taxes such as VAT, PAYE, or Corporation Tax
  • Shareholders: Can petition on ‘just and equitable’ grounds when there’s deadlock, misconduct, or a breakdown of trust between shareholders
  • Other creditors: Any creditor owed £750 or more can file a petition if the company cannot pay its debts

 

Options After Receiving a Winding Up Petition

If your company has been served with a winding up petition, you still have several potential courses of action — each with its advantages and risks.

Option When to Consider Pros Cons
Pay the debt in full You have funds to settle immediately Stops petition process Cash flow impact
Negotiate with creditor Debt is valid but you need time Avoids court hearing if agreement reached Creditor may refuse
Dispute the debt Debt is incorrect or unenforceable May stop petition entirely Legal costs can be high
Propose a Company Voluntary Arrangement (CVA) Company is viable but insolvent Keeps business trading Requires creditor approval
Let it proceed Business is no longer viable Ends ongoing debts Total loss of company

 

Common grounds for filing a petition

The primary reason for most winding-up petitions is that a company is unable to pay its debts.

This can be established in several ways under the Insolvency Act 1986, including:

  • If it fails to comply with a statutory demand within 21 days
  • Through cashflow insolvency where a company cannot meet its obligations as they fall due
  • Balance sheet insolvency where a company’s liabilities exceed its assets

However, the Act also recognises legal grounds beyond debt-related issues, most notably petitions brought on ‘just and equitable’ grounds, which are typically used for internal disputes – particularly where trust has broken down between shareholders or directors, making it impossible to run the business effectively. 

What to do if you receive a winding-up petition

What if you’re reading this after a petition is advertised, or a court hearing date set?

Should you give up? No.

Even after a winding-up order is granted by the court, you can apply to rescind it providing you do so within five business days.

You can appeal a decision within 21 days. 

Additionally, a stay of liquidation proceedings can be made at any time.

 

Documents & Information Needed for Your Solicitor

Receiving a winding up petition can be alarming, but it doesn’t always mean the end of your business. The right course of action will depend on your company’s financial position, the validity of the debt, and your long-term goals. Acting quickly is essential — from understanding your legal options to knowing what documents you need in order to proceed. Preparing the correct winding up petition documents in advance can help your solicitor act faster and improve your chances of a positive outcome

Document Purpose
Copy of the winding up petition Review the case and creditor claims
Correspondence from creditor Understand payment history and negotiations
Company accounts & bank statements Assess solvency and repayment options
Contracts & major agreements Identify ongoing obligations
Asset register Determine possible liquidation value

Winding Up Petition Response Checklist:

Step 1 – Confirm Details of the Petition

  • Check the date the petition was served

  • Verify the creditor’s details and the amount owed

  • Confirm the court hearing date

Step 2 – Seek Immediate Professional Advice

  • Contact a licensed insolvency practitioner or solicitor

  • Share the petition copy for review

  • Discuss all possible options (repayment, dispute, CVA, negotiation)

Step 3 – Gather All Winding Up Petition Documents

(What documents do I need for winding up petition cases?)

  • Copy of the winding up petition (served by creditor)

  • Court correspondence

  • Company accounts (latest management accounts & annual filings)

  • Bank statements (business accounts for the last 6–12 months)

  • Correspondence with creditor (emails, letters, payment plans)

  • Contracts & agreements (to identify ongoing obligations)

  • Asset register (list of business property, stock, and equipment)

Step 4 – Decide on Your Response

  • Pay the debt in full before the court hearing

  • Negotiate settlement with creditor

  • Dispute the petition if the debt is incorrect or unenforceable

  • Propose a Company Voluntary Arrangement (CVA) if the business is viable

Step 5 – Take Action Before the Hearing

  • Ensure all documents are with your solicitor

  • File any required court paperwork in time

  • Prepare your case or repayment plan for the hearing

How Irwin Insolvency can help

A winding-up petition isn’t simply a legal threat; it’s a fast-moving process with permanent consequences for your business.

However, if you seek expert advice early and respond quickly, it can be possible to avoid a worst-case scenario.

You can then negotiate settlements, enter into a CVAs, or successfully dispute claims and potentially save your business. 

Our team of professionals possesses the expertise that your business needs, and can provide advice tailored to your company’s circumstances.

Don’t delay, contact us today.

Speak to an Advisor Now

0800 254 5122



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I would like to indicate my appreciation of the polite and professional manner in which business was conducted. Thank you to you and the team.

Mr. B D

Great Guys. Very Competent. Sat down with me and explained the law and all the proceedings without rushing me. Kept me up to date with everything. Great Service and would not hesitate to use again. 5 Stars !

Mr. Adam G

Thank you for all your help in the liquidation. I will always pass on your details and recommend you.

Mr. J M

About the author

Gerald Irwin

Gerald Irwin is founder and director of Sutton Coldfield-based licensed insolvency practitioners and business advisers, Irwin Insolvency. He specialises in corporate recovery, insolvency,
 rescue and turnaround.

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