Winding Up Petitions and Orders
Help – I’ve been Issued a Winding Up Petition / Order
A winding up petition should be taken very seriously, as a court order to place a business into compulsory liquidation follows.
What is a Winding Up Petition?
A winding-up petition (or WUP) is a legal action taken by HMRC or creditors that are owed money by your business and who have lost faith in your willingness or ability to repay.
If the petition matures to become a winding-up order, a liquidator will be appointed to close down your business.
How Business Guardian Can Help.
Whether your intention is continuing trading or want to close your business in the most orderly and cost-efficient manner – we can help.
HMRC is responsible for issuing about 60% of all winding-up petitions. They do not need to issue a CCJ or Statutory Demand beforehand.
Get A Winding Up Order Advice
Speak To Us About
Winding Up Orders.
Whether your intention is to continue or cease trading, we are able to provide the support you are looking for.
Once your bank sees the winding-up petition, they will likely freeze your account. Post-petition disposal of the assets are void as any transactions made during the winding-up petition can be undone by a subsequently appointed liquidator.
Winding-Up Petition Timeline
Once the winding-up petition has been issued, you will be faced with the decision of appealing the WUP or paying it. In seven days, WUP is advertised in the Gazette, where other creditors can also support the WUP claim if they too meet the requirements for the winding-up petition.
The WUP claim will then have its hearing in court, where it will either be thrown out or approved.
If the petition is approved, then your company will go into compulsory liquidation, and the creditors can assign an insolvency practitioner to take control over the liquidation. In almost all cases, you would want to Avoid Compulsory Liquidation.
Stopping a winding-up petition
Once you’ve received a winding-up petition, you need to act quickly to save your company. There is a seven-day time limit during which to take one of the following courses of action:-
- Contest the petition,
- Pay the outstanding debt in full,
- Put the company into Administration while options are explored,
- Opt for a Company Voluntary Arrangement,
- Opt for a Creditor’s Voluntary Liquidation