Winding Up A Company

As soon as you contact us, we begin with a confidential and in-depth review of your company’s financial and legal position.

• We assess whether the petition is valid or can be challenged (e.g., on grounds of a disputed debt).
• If you’ve not yet received a winding up petition but are concerned, we help evaluate warning signs and your options.
• If a petition has already been issued, we confirm key deadlines and risks (e.g., the seven-day notice period before it can be advertised in The Gazette).

Goal: Understand your exposure and determine whether rescue is possible or whether winding up is the appropriate path.

We act quickly to open lines of communication with the petitioning creditor(s).

• We negotiate on your behalf to secure additional time, payment plans, or a potential withdrawal of the petition.
• Where appropriate, we can apply for an adjournment to give the company more breathing space.
• If the debt is in dispute, we assist in preparing a strong defence and may apply to have the petition dismissed.

Goal: Delay or prevent the petition being advertised, which could trigger bank account freezes and irreversible damage.

If the petition proceeds, we ensure you’re legally and professionally represented.

• We coordinate all necessary documentation, including the statement of affairs.
• If there’s a viable route forward (e.g., via Company Voluntary Arrangement), we prepare supporting proposals to present to the court.
• Our team liaises with your solicitor or barrister to ensure a coherent and compelling case is presented.

Goal: Secure the best possible outcome at the hearing – be it an adjournment, dismissal of the petition, or a court-sanctioned rescue plan.

Following the hearing – or sometimes before it – we put the appropriate recovery or wind-up strategy into motion.

If rescue is viable, we may:

• Propose and implement a Company Voluntary Arrangement (CVA) to restructure debts and continue trading.
• Enter into administration to protect the company from creditors while a plan is developed.
• Facilitate a pre-pack administration to sell assets and preserve parts of the business.

If winding up is inevitable, we ensure a smooth and compliant process:

• Act as liquidators (if appropriate) and oversee the fair distribution of assets.
• Handle all creditor communications and statutory filings with Companies House and HMRC.
• Minimise disruption to directors, employees, and stakeholders.

Goal: Deliver a structured solution – whether it’s saving the business or winding it up in the most efficient, legally sound way.

Even after the immediate issue is resolved, we continue to support you.

• We advise on your duties as a director during insolvency proceedings, including personal liability risks.
• If you plan to start again, we help you understand the legal implications of creating a phoenix company.
• We support you in dealing with HMRC, employee claims, and creditor disputes during and after the wind-up.

Goal: Provide reassurance and practical advice so you can move forward with confidence – whether continuing in business or closing this chapter.

A winding up petition is a formal legal action filed by a creditor in court to force a company into compulsory liquidation due to unpaid debts. Typically, it’s issued when a debt of £750 or more remains unpaid, and all other collection efforts have failed.

Once a petition is served, you have limited time before it is advertised in the Gazette. After that, banks may freeze your accounts, and the company could be wound up. Time is of the essence—professional advice should be sought immediately.

Yes, it is possible to stop a winding up petition by paying the debt, negotiating with the creditor, applying for an adjournment, or proposing a Company Voluntary Arrangement (CVA), Administration/Restructuring or Creditors’ Voluntary Liquidation. Early action increases your chances of a successful outcome.

It is a serious threat that, if not addressed promptly, can result in your company being liquidated and assets being sold to repay creditors.

A winding up petition is the application to the court by a creditor, while a winding up order is the court’s decision to compulsorily liquidate the company. If the petition is not successfully opposed, it results in a winding up order.

If the court issues a winding up order, the company’s assets are liquidated by an official receiver to repay creditors. The business will cease trading, employees will be dismissed, and the company will be dissolved from the Companies House register.

In most cases, continuing to trade after receiving a petition is extremely risky. Directors could be held personally liable if losses are incurred. Always consult a licensed insolvency practitioner before taking further business actions.

Yes, with timely intervention and professional help, a winding up petition can be challenged, and solutions can be found to prevent compulsory liquidation.

If ignored, the court can grant a winding up order, leading to the company’s forced closure and liquidation.

Costs vary depending on the complexity of the case. Contact us for a tailored consultation and quote.

Yes—once a winding up petition is advertised, banks often freeze accounts to protect creditors’ interests. This can paralyse operations, making immediate professional intervention essential.

Yes, though creditors may be unwilling to negotiate once a petition has been filed. Chamberlain & Co can act on your behalf to open discussions and propose realistic alternatives to liquidation.

Yes, depending on your financial position and how early you act. Rescue solutions include CVAs, restructuring, or even refinancing. The sooner you seek advice, the more rescue options are available.

A validation order allows specific transactions or payments to occur despite the winding up petition—such as paying suppliers or staff. Without one, these payments could later be reversed. Validation orders are often needed to continue trading or protect vital assets.

Directors must act in the best interest of creditors, not shareholders. Failing to do so may result in allegations of wrongful trading, personal liability, or director disqualification.

Costs vary depending on the complexity of your case, but the cost of doing nothing is often far greater. We offer a free initial consultation to assess your position and outline your best course of action.