Responding to a winding-up petition
A winding-up petition is a serious court step that can end with your company being wound up, so the most important thing is to take advice the same day it arrives. There is a hearing date on the petition, and gov.uk says it can be advertised in The Gazette at least 7 working days before the hearing. Once it is advertised, your bank will usually freeze the company account. Your options depend on your facts: if the company can pay in full it may be able to settle and have the petition withdrawn before advertisement; if the debt is genuinely disputed on substantial grounds, take legal advice about challenging it; and if the company is insolvent, take advice on liquidation or administration. Do not ignore it, and do not move money to dodge the freeze. Use the checklist below to get organised, then get advice. gov.uk: Wind up a company that owes you money
The checklist and letter
Copy or download the checklist and letter below. The letter has three alternative paragraphs; choose the one that fits your situation and delete the others. Because timing and the strength of any dispute matter so much, have a licensed insolvency practitioner or solicitor look at it before you send it.
RESPONDING TO A WINDING-UP PETITION: CHECKLIST
A winding-up petition is a serious court step that can end with the company
being wound up. Time is short and the right move depends on your facts, so
take advice from a licensed insolvency practitioner or a solicitor
straight away. This checklist is only to help you get organised.
FIRST, GET THE FACTS STRAIGHT
[ ] Find the petition and note the hearing date
[ ] Note when the petition may be advertised in The Gazette (this can
happen at least 7 working days before the hearing)
[ ] Work out whether the bank has frozen, or is likely to freeze, the
company account once the petition is advertised
[ ] Confirm exactly who the petitioning creditor is and the amount claimed
WORK OUT WHICH SITUATION YOU ARE IN
[ ] Do you accept the debt is owed, or do you genuinely dispute it on
substantial grounds? (This changes everything, so be honest.)
[ ] Can the company pay the debt in full? If so, paying or settling before
the advertisement is usually the cleanest way to stop the petition.
[ ] Is the debt genuinely disputed? If so, take legal advice urgently
about applying to court, for example to restrain advertisement or to
challenge the petition.
[ ] Is the company insolvent and unable to pay? If so, take insolvency
advice about a creditors voluntary liquidation or administration.
DO NOT
[ ] Do not ignore the petition and hope it goes away
[ ] Do not keep making payments out of the company account without advice,
as payments after the petition can be at risk
[ ] Do not try to move company money to a new account to dodge the freeze
GET ADVICE THE SAME DAY
[ ] Speak to a licensed insolvency practitioner or an insolvency solicitor
about your specific options and the deadlines that apply to you
LETTER TO THE PETITIONING CREDITOR (adapt to your situation)
[Company name] Limited
[Registered office address]
[Petitioning creditor / their solicitors]
[Address]
Date: [date]
Re: Winding-up petition against [company name], hearing on [date]
Dear [name, or "Sir or Madam"]
We write about the winding-up petition presented against the company.
[Choose ONE and delete the rest:]
[If you can pay/settle:] The company wishes to resolve this matter and is
in a position to [pay the sum of [amount] / offer [settlement terms]] in
order to have the petition withdrawn. Please confirm the exact figure
required, including your costs, and how you wish to be paid, as a matter
of urgency given the hearing date.
[If the debt is disputed:] The company disputes this debt on substantial
grounds, namely [set out briefly]. We consider the petition to be an
inappropriate means of pursuing a disputed debt. We are taking legal
advice and reserve the right to seek an order restraining advertisement
and to ask that the petition be dismissed, with costs.
[If you need a short time to take advice:] The company is taking urgent
professional advice on this matter and will revert to you by [date, which
must be before the hearing]. In the meantime we ask that you do not
advertise the petition.
We would be grateful for your prompt reply given the timescale.
Yours [faithfully / sincerely]
......................................
[Name]
[Position, for example Director]
For and on behalf of [company name] Limited
[Contact details] Why the clock matters
The petition can be advertised in The Gazette at least 7 working days before the hearing, and once a bank sees the advert it will normally freeze the company account to protect itself. That often catches directors by surprise and stops wages and direct debits. Payments made out of the company after the petition can also be at risk, which is why our page on paying wages after a petition explains the need for a validation order rather than simply carrying on. You can see the wider sequence on our winding-up petition timeline.
Get the right advice for your situation
If the debt is genuinely disputed on substantial grounds, that is a matter for a solicitor and can change the whole picture. If the company simply cannot pay, the honest step is advice from a licensed insolvency practitioner about an orderly liquidation or a rescue through administration. Our winding-up petition guide covers the process in more depth. This template is general information, not legal advice, and it cannot promise any particular outcome.
Related: winding-up petitions, the petition timeline, statutory demands, and the creditor holding letter.
Responding to a winding-up petition: common questions
How long do I have to respond to a winding-up petition?
Less time than you think, so act at once. There is a hearing date on the petition, and according to gov.uk the petition can be advertised in The Gazette at least 7 working days before the hearing. Once it is advertised, your bank will usually freeze the company account. The practical steps, paying, disputing or taking insolvency advice, all work better the earlier you take them, so get advice the same day the petition arrives.
Can I stop a winding-up petition by paying the debt?
Often, yes, if the company can pay in full and does so before the petition is advertised, the petitioning creditor may agree to withdraw it. You should confirm the exact figure, including their costs, in writing. But if other creditors have already learned of the petition they can be substituted, and once it is advertised the position is harder. Take advice before paying, because paying some creditors and not others when the company may be insolvent can cause problems.
What happens if I do nothing?
If the petition is not dealt with, the court can make a winding-up order at the hearing. According to gov.uk, the court then issues a winding-up order and an official receiver takes control of the company to turn its assets into money for the creditors. You lose control of the company and the conduct of the directors is investigated. That is why doing nothing is the worst option, and why advice on the same day matters.
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This is general information, not legal or financial advice, and does not guarantee any outcome. A winding-up petition is a court process with short deadlines: get advice from a Licensed Insolvency Practitioner or an insolvency solicitor immediately. Last reviewed July 2026.