A winding-up petition is one of the most serious things a creditor can do: it asks a court to close the company down. If one is threatened or issued, act immediately.
What it is
A winding-up petition asks the court to place the company into compulsory liquidation because it cannot pay its debts. It is a powerful, high-stakes step, and its consequences — including frozen bank accounts once advertised — can be severe and fast.
Respond urgently
Do not ignore a petition or a statutory demand that precedes one. There are strict deadlines and real remedies — paying, disputing a genuinely disputed debt, or negotiating — but only if you act at once.
Get specialist advice immediately
This is not a stage to handle alone. A licensed insolvency practitioner or solicitor should be involved straight away. Early action can sometimes stop a petition in its tracks.
If a demand or petition arrives, seek advice the same day — Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: If a company is wound up or goes into administration, Dealing with a county court claim against your company, Understanding business insolvency options.