I’ve received a winding-up petition: What do I do?

17 April 2026

The Insolvency Service reported a 660 per cent jump in companies receiving a winding-up petition, from 491 to 3730 petitions, between 2021 and 2025.

If you have received a winding-up petition, you cannot bury your head in the sand and ignore it.

By understanding the process, you will know how to respond and face the situation head-on.

What is a winding-up petition?

A winding-up petition is when a creditor makes an application to the court to close your company because you cannot pay your debts.

If the court grants the petition, it will issue a winding-up order and your company will be placed into compulsory liquidation.

The control of your company will then pass to an Official Receiver or an appointed insolvency practitioner who will take over the business and distribute any funds to creditors.

When will I get a winding-up petition?

You will often receive a winding-up petition because you have an unpaid debt of at least £750 with a creditor.

The creditor then has the choice to put the position in the London Gazette and this is usually seven days after the petition has been served.

This is where things start to get more serious. The banks often monitor these notices and may freeze your company’s accounts, restricting your ability to trade.

I’ve received a petition, what now?

As tempting as it is, you cannot avoid a petition and doing so will likely lead to a court hearing where your company could be wound up if no action is taken.

You need to take a good look at the details of your petition and this includes the amount claimed and the basis of the debt.

Then you need to consider whether the debt is genuinely owed and accurate or if there are any grounds to dispute it.

Additionally, you should assess your company’s financial position and whether the debt can be paid in full or if a settlement is possible.

There is usually a short window before the petition is advertised so moving quickly during this time could help protect your company.

What if I cannot pay the debt?

If you’ve worked out the numbers and found you are unable to pay the debt, you need to know the next best route for your company.

You may want to discuss the potential of negotiation with your creditor and whether you can set up payment arrangements or a settlement.

You might also be able to apply to the court for an adjournment and this can give you time to raise funds and consider your next steps.

It’s not always easy to work out a payment plan, especially if you are facing financial pressures and you may need to look to insolvency solutions, such as administration or a company voluntary arrangement.

You might also come to the conclusion that the debt should be disputed, but you will need clear evidence to support this.

Although you need to be aware that the court does not tolerate this process being used simply to delay payment.

Why do you need legal support?

Having the support of an expert from the get-go to guide you through the winding-up procedures and deadlines is invaluable.

Our professional team can help review your petition and support you in negotiating with the creditor.

We can also support you in disputing the petition, gathering the necessary evidence and handling the process compliantly.

A winding-up petition does not have to be the end of your business and seeking early legal support could be the lifeline you need.

If you need further advice on managing or disputing a winding-up petition, contact us.