Winding-up petition: what to do

A winding-up petition is a formal court application by a creditor to close your company because a debt has not been paid. It is the most serious step a creditor can take. After the petition is served it is advertised in The Gazette no sooner than seven business days later, and once advertised your bank will almost always freeze the company accounts, because payments made after presentation can be void under section 127 of the Insolvency Act. HMRC presents more winding-up petitions than any other creditor. You usually have a short window of a few weeks between service and the court hearing in which you can still act: pay or dispute the debt, seek an adjournment, agree time to pay, or move to a controlled insolvency procedure. Do not wait for the hearing. Speak to a Licensed Insolvency Practitioner the day you are served. The Gazette; Insolvency Act 1986 s127

This is time sensitive. If you have been served a demand or petition, options narrow fast. Speak to a Licensed Insolvency Practitioner today.

Key facts

What it is: A court application to wind your company up over an unpaid debt
Usual trigger: A debt over £750, often after a statutory demand
Advertised: In The Gazette, no sooner than 7 business days after service
Bank accounts: Usually frozen once advertised (s127 risk)
Your window: The weeks between service and the hearing

The seven-day window that matters most

The gap between being served and the petition being advertised in The Gazette is the critical period. Once advertised, the account freeze and reputational damage follow quickly. Use our petition timeline tool to see your dates, then take advice immediately.

Your realistic options

If the debt is genuinely disputed you may apply to restrain or dismiss the petition. If it is not, your choices are usually to pay, settle, agree Time to Pay, or take control through a CVL or administration. A practitioner will tell you within one call which of these is open to you.

Common questions

How long do I have after a winding-up petition?

Typically a few weeks from service to the court hearing, but the bank freeze can bite within days of the Gazette advert. Treat it as urgent from the moment you are served.

Can I ignore a winding-up petition?

No. Ignoring it leads to a winding-up order, compulsory liquidation and an investigation into your conduct. Even if you cannot pay, acting early gives you far better options.

Is a statutory demand the same as a petition?

No. A statutory demand is a formal warning that often comes first, giving 21 days to pay before a petition can be presented. It is your cue to get advice before things escalate.

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Winding-up petition: what to do. A winding-up petition is a formal court application by a creditor to close your company because a debt has not been paid. It is the most serious step a creditor can take. After the petition is served it is advertised in The Gazette no sooner than seven business days later, and once advertised your bank will almost always freeze the company accounts, because payments made after presentation can be void under section 127 of the Insolvency Act. HMRC presents more winding-up petitions than any other creditor. You usually have a short window of a few weeks between service and the court hearing in which you can still act: pay or dispute the debt, seek an adjournment, agree time to pay, or move to a controlled insolvency procedure. Do not wait for the hearing. Speak to a Licensed Insolvency Practitioner the day you are served.

Speak to a Licensed Insolvency Practitioner

Tell us briefly what is happening and we will arrange a free, confidential, no obligation call with a Licensed Insolvency Practitioner. The earlier you get advice, the more options you usually have.

Free, confidential and no obligation. We are an independent information service and introduce directors to a Licensed Insolvency Practitioner. This is general information, not regulated advice.