The short answer
A winding-up petition is a formal court application by a creditor (often HMRC) to force an insolvent company into compulsory liquidation. It is the most serious creditor action there is. Once it is advertised in The Gazette, your bank will usually freeze the company’s accounts, and any disposal of company assets after the petition can be void. You have a short window — act immediately by taking advice from a licensed insolvency practitioner; options shrink fast.
If a winding-up petition has been issued against your company, treat it as urgent. Unlike a letter or a statutory demand, a petition puts your company’s survival in the hands of a court — and once it is advertised, your bank account is typically frozen and the practical options narrow by the day. This guide explains exactly what a petition is, the timeline, and the moves still open to you.
Winding-up petition at a glance
- What it is Court action to force liquidation
- Who usually brings it HMRC and other creditors
- Debt threshold Generally £750+ owed and unpaid
- Big danger point Advertisement in The Gazette
- Immediate effect Bank accounts usually frozen
- What to do Take IP advice the same day
What a petition actually is
A creditor that is owed money it cannot recover can ask the court to wind the company up — to put it into compulsory liquidation and have its assets sold to pay creditors. To petition, the creditor generally needs to be owed at least £750 that is due and unpaid, often after a statutory demand has gone unanswered. HMRC is the most common petitioner.
The timeline — and the point of no return
- Petition issued at court and served on the company.
- Advertised in The Gazette — usually at least 7 business days after service. This is the critical moment: it becomes public, and banks routinely freeze the company’s accounts.
- Hearing — the court decides whether to make a winding-up order.
- Winding-up order — the Official Receiver takes control, directors’ powers cease, and the company is in compulsory liquidation.
Your options when a petition lands
| Situation | Possible action |
|---|---|
| The debt is genuinely disputed | Apply to the court to challenge or dismiss the petition — act fast, before advertisement |
| You can pay the debt | Pay in full (including costs) before the hearing — the petition can be dismissed |
| The company is viable | An insolvency practitioner may propose administration or a CVA, which can pause the petition |
| The company is insolvent and not viable | A CVL may still be possible if started quickly — keeping you in control of the choice of liquidator |
What happens if a winding-up order is made
The company enters compulsory liquidation. The Official Receiver (a civil servant of the Insolvency Service) becomes liquidator initially, investigates the company’s affairs and directors’ conduct, realises assets and reports. Directors must cooperate, hand over records and attend interviews. Trading stops.
Has a winding-up petition been issued against your company?
This is time-critical. Speak to a licensed insolvency practitioner today — before any Gazette advertisement — while options such as challenging the petition, rescue or a controlled CVL are still open.
Frequently asked questions
How long do I have after a winding-up petition?
Very little. The petition is usually advertised in The Gazette at least 7 business days after service, and once advertised your bank typically freezes the accounts. The hearing follows within weeks. Take advice the day you receive it.
Will my bank account be frozen?
Almost always, once the petition is advertised in The Gazette. Banks freeze company accounts to avoid making payments that could later be declared void under section 127.
Can I stop a winding-up petition?
Sometimes — by paying the debt and costs before the hearing, by challenging a genuinely disputed debt at court, or by proposing a rescue (administration or CVA) through an insolvency practitioner. Speed is everything.
Who usually issues winding-up petitions?
HMRC is the most frequent petitioner for unpaid tax, followed by trade creditors, landlords and lenders.
Is a statutory demand the same as a petition?
No. A statutory demand is a formal warning giving 21 days to pay before a creditor can petition. A petition is the court action itself. A statutory demand is your chance to act before it escalates.
Sources & further reading
- Insolvency Act 1986 — ss.122–127 (winding up by the court)
- GOV.UK — Wind up a company that owes you money; If your company gets a winding-up petition
- The Insolvency Service — the role of the Official Receiver
- The Gazette — official public record of insolvency notices
This guide is general information, not formal insolvency advice. Your situation must be assessed by a licensed insolvency practitioner before you act.