A winding-up petition is a formal court application by a creditor to compulsorily close a company that cannot pay its debts. If the court grants it, the company enters compulsory liquidation and the Official Receiver takes control. The minimum debt threshold to present a petition is £750.

Any creditor can issue a winding-up petition once a company owes an undisputed debt of at least £750. The petition is filed at the Business and Property Courts, served on the company, and advertised in The Gazette. Strict procedural rules apply under the Insolvency Rules 2016, and any failure in service gives the debtor grounds to challenge.

A winding-up petition can be stopped by paying the debt in full, disputing the petition on substantial grounds, negotiating a Time to Pay arrangement with HMRC, or entering a formal rescue procedure such as administration or a CVA. Acting before Gazette advertisement gives you the most options.

Once a petition is served, Section 127 of the Insolvency Act 1986 applies immediately, meaning post-petition payments risk being ruled void. After Gazette advertisement, bank accounts are typically frozen, suppliers may react, and the petition becomes publicly visible. If a winding-up order is made, the company enters compulsory liquidation.

Yes, a winding-up petition can be withdrawn, but only with the court’s permission. Full payment of the petition debt and the petitioner’s legal costs is the most common reason. If another creditor has filed a substitution notice, paying the original petitioner alone will not end the proceedings.

A winding-up petition typically takes 8 to 12 weeks from presentation to the court hearing. The petition must be advertised in The Gazette no less than seven business days after service. That first seven-day window is the most important period, as rescue options are widest before advertisement.

For creditors issuing a petition, court fees are £332 plus a deposit of £1,600, with additional solicitor costs on top. For companies defending a petition, costs vary depending on the complexity and approach taken. Most winding up petition lawyers will provide a clear cost estimate before work begins.

When a winding-up petition is issued, the Section 127 risk attaches immediately. The company has around seven business days before Gazette advertisement. Once advertised, bank accounts may freeze and the petition becomes publicly visible. At the hearing, the court can make a winding-up order, adjourn, or dismiss the petition.

Yes, a petition can be dismissed where the debt is genuinely disputed on substantial grounds, where a right of set-off extinguishes the debt, or where there is a material defect in service. The court expects a witness statement and supporting evidence. Where grounds are credible, seek an injunction immediately to prevent Gazette advertisement.