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At Fast Insolvency, we offer urgent support for companies facing or at risk of winding-up petitions.
A winding-up petition is one of the most serious actions a creditor can take, often resulting in compulsory liquidation if not dealt with quickly.
Our licensed insolvency practitioners act fast to protect your company, explore your options, and offer clear, practical solutions.
Contact us immediately for free, confidential advice if you’ve received a petition or need to protect your company from being wound up.
What Is a Winding-Up Petition?
A winding-up petition is a legal request made by a creditor to the High Court to force a company into compulsory liquidation due to unpaid debts.
If granted, it can result in the company being closed and its assets sold to repay creditors.
When Can a Creditor File a Winding-Up Petition?
A creditor can file a petition if your company owes them £750 or more in and has failed to pay, ignore, or dispute the debt.
Usually, this follows the issue of a statutory demand in or court judgment.
What Happens If I Ignore a Winding-Up Petition?
Failing to respond to a petition can result in the court granting a winding-up order, which initiates the compulsory liquidation process.
Your company’s bank account may be frozen in , staff made redundant, and all control passed to the Official Receiver or an appointed liquidator.
Can I Stop a Winding-Up Petition?
You can stop a petition by paying the debt in full, disputing it with evidence, or negotiating a Company Voluntary Arrangement (CVA) in .
Another option is placing the company into voluntary liquidation or administration before the court hearing.
How Long Do I Have to Respond to a Petition?
Once a petition is served, you typically have 7 days to respond before it is advertised in the Gazette.
After publication, banks are notified and may freeze accounts, so it’s crucial to act fast.
What Is the Role of the Court?
The court hears the petition to decide whether to issue a winding-up order in .
If no defence or repayment is made, the court is likely to grant the order and appoint an Official Receiver to liquidate the company.
Will Creditors Be Paid in a Winding-Up?
After assets are sold, funds are used to pay secured creditors, followed by preferential creditors (such as employees), and finally unsecured creditors in .
In many cases, there are limited funds available, especially once costs are deducted.
What Are the Consequences of a Winding-Up Order?
Consequences include immediate loss of control in for directors, business closure, employee redundancies, asset seizure, and a formal investigation into director conduct by the Official Receiver.
Will Directors Be Personally Liable?
If wrongful trading, fraud, or misconduct is found, directors can face disqualification, fines, or personal liability for company debts.
Can I Still Enter Voluntary Liquidation After Receiving a Petition?
You must act before the court hearingorder to still enter voluntary liquidation.
Entering a Creditors’ Voluntary Liquidation (CVL) gives you more control over the process and lets you appoint your own insolvency practitioner.
How Much Does It Cost to Defend a Petition?
Costs vary depending on whether you’re paying the debt, entering a CVA, or defending the petition in court.
At Fast Insolvency, we provide fixed-fee support and urgent advice to help minimise legal risk and business disruption.
Can I Trade After a Petition Is Issued?
Trading after receiving a petition is risky.
You must avoid incurring new liabilities and ensure all actions are in creditors' best interests.
Improper trading could result in personal liability or future disqualification.
Why Is It Published in the Gazette?
A winding-up petition is published in the London Gazette to alert other creditors and stakeholders.
Once published, your bank is likely to freeze accounts to protect funds for the benefit of creditors.
Is a Winding-Up Petition Public?
Once filed and advertised, it becomes a matter of public record in .
This can damage the company’s reputation and affect relationships with suppliers and clients.
Get Urgent Winding-Up Petition Advice Today
If you’ve received a petition, time is critical.
We provide urgent, expert advice to help you manage or defend winding-up petitions quickly and effectively.
Contact Fast Insolvency now for free, same-day advice and stop the process before it’s too late.