Awinding up petition can be filed by any creditor owed at least £750 by your company. If they can prove to the court that your company is insolvent and incapable of paying its debts (a statutory demand will have already been issued giving your company 21 days to pay) then a winding up order will be granted and your company will be placed into compulsory liquidation.

An insolvency practitioner will be appointed and any assets in the company will be seized and used to pay the creditors. The insolvency practitioner will also investigate the behaviour of the directors to establish if any fraudulent activity has taken place or any wrongdoing in general.

Compulsory liquidation can be extremely damaging and is clearly something to avoid but the good news is that if you have received a winding up petition there is usually still time to act and possibly save your company.

At the Insolvency Helpline we can negotiate with your creditors on your behalf (HMRC issue large numbers of winding up petitions and can be extremely aggressive in collecting unpaid taxes) and even write off much of the debt owed. If it is clear your company has no future then we can arrange a Creditors Voluntary Liquidation (CVL) which will give you far more control and can allow you to make a fresh start or even launch another business.

If you have received a winding up petition then don’t panic – unlike other companies we provide free advice and can guide you through the whole process. We help over 100 companies a month so why not try our FREE 60 Second Test or call us on +4477 1566 4532.