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
Talk it through, free and confidential No obligation. We introduce you to the right regulated expert.
At a glance
| Option | When it fits |
|---|---|
| Pay or settle | The debt is not disputed and the company can raise the money |
| Dispute the petition | The debt is genuinely disputed: you may apply to restrain or dismiss it |
| Time to Pay | Especially with HMRC: a realistic proposal backed by real cash flow can lead to withdrawal or adjournment |
| CVL | Take control of an insolvent position: you choose the timing and the practitioner |
| Administration | A moratorium pauses creditor action, including the petition, while rescue is pursued |
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.
When HMRC is the petitioner
An HMRC winding-up petition is the most common kind: HMRC presents more petitions than any other creditor, usually after VAT, PAYE or Corporation Tax arrears have gone unaddressed through its earlier enforcement stages. The response is the same as for any petition but the leverage differs: HMRC will often still consider a realistic Time to Pay arrangement even late in the day, and a credible proposal backed by real cash flow can lead to the petition being withdrawn or the hearing adjourned. What does not work is silence. If the letters have escalated to a petition, our HMRC debt page covers the wider position, and same-day advice is essential.
After the hearing: the winding-up order
If the petition succeeds at the hearing, the court makes a winding-up order and the company enters compulsory liquidation. From that moment the company is no longer yours: the Official Receiver takes control as liquidator, trading stops, staff are dismissed, bank accounts close, and the directors' conduct in the run-up is investigated as a matter of course. A winding-up order cannot simply be undone; setting one aside is rare and technical. That is why everything on this page points the same way: the weeks before the hearing are when you still have choices, and the day the order is made you have almost none. Compulsory liquidations forced through this way still run to hundreds of cases a month; see the current official insolvency figures for the latest count and how it compares with director-led CVLs.
The numbers behind this
See the live official figures on our winding-up petition tracker. Current winding-up petition volumes and who is filing them. All figures come from named official sources on our UK business distress data hub.
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.