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, and it is the most serious step a creditor can take. The court fixes the hearing date when the petition is filed, and it is written on the petition you are served with. Use the time before the hearing to pay or dispute the debt, seek an adjournment, agree payment, or move to a controlled insolvency procedure. Speak to a Licensed Insolvency Practitioner as soon as you know the debt has been passed to enforcement (a petition will follow) or as soon as you are aware of a petition. The Gazette; Insolvency Act 1986 s127
- 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 (Insolvency Act 1986 s123)
- Advertised
- In The Gazette, no sooner than 7 business days after service (Insolvency Rules 2016 r7.10)
- Bank accounts
- Usually frozen once advertised (s127 risk starts at presentation)
- Your window
- The weeks between service and the hearing
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The winding-up petition timeline
Knowing where you are on it tells you how urgently to act.
- Statutory demand21 days to pay (debt over £750)
- Petition servedDay 0
- Advertised in The GazetteNo sooner than 7 business days after service
- Bank account frozenUsually after the advert (s127 risk starts at presentation)
- Court hearingDate fixed by the court when the petition is filed
Indicative statutory timing; your exact dates depend on the court and creditor.
Sources: the £750 debt and 21 days, Insolvency Act 1986 s123; advertisement no sooner than 7 business days after service, Insolvency Rules 2016 r7.10; payments after presentation void unless validated, s127; hearing date fixed by the court when the petition is filed, r7.7.
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 | Rarely open once a petition is issued: in practice HMRC will not usually accept anything other than payment in full at that stage |
| 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 window before advertisement matters most
After the petition is served it is advertised in The Gazette no sooner than seven business days later. Once advertised, banks routinely freeze company accounts, because section 127 of the Insolvency Act 1986 makes dispositions of company property void unless the court validates them, and a bank that permits payments could be required to replace them. Trade credit tends to disappear in the same week, since suppliers monitor the Gazette. That is why the gap between service and advertisement is worth so much more than the time after it, and why the practical advice is to act immediately rather than wait for the hearing date. Use our petition timeline tool to see your dates, and the statutory timeline for every deadline and the rule behind it. If the account is already frozen, a validation order is the mechanism that permits specific payments such as wages. However, these can be difficult to obtain.
Your realistic options
If the debt is genuinely disputed you may apply to restrain or dismiss the petition. If it isn't, your choices are usually to pay in full, settle with the creditor, 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
HMRC is one of the most active petitioners, 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, with one practical difference: in practice, once HMRC has issued a petition it will not usually accept anything other than payment in full. A Time to Pay arrangement has to be agreed before that point, which is why engaging early matters so much. What doesn't 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 automatically 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.
Related data
Our winding-up petition tracker: Recent winding-up petitions published in The Gazette. Every page on our data hub names its official source.
Where to go from here
- Use the matching template: Winding-up petition response checklist.
- If you decide to speak to a Licensed Insolvency Practitioner, choose your own: our practitioner directory lists every practitioner on the official Insolvency Service register, and how to choose an insolvency practitioner explains what to ask. Always confirm their entry on the official register before you instruct anyone.
Common questions
How long do I have after a winding-up petition?
Until the hearing. The court fixes the hearing date when the petition is filed, and it is written on the petition you are served with (Insolvency Rules 2016, rule 7.7(4)). Our insolvency timings page measures the real gap from Gazette notices. The bank freeze can bite within days of the Gazette advert, so treat it as urgent from the moment you are aware.
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 can't 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.