What is a winding-up petition, and should I use one to get paid?
The short answer
Rarely. A winding-up petition asks the court to close a company that cannot pay its debts and share what is left among everyone it owes, so you might not get all or any of your money1. It costs a £352 court fee plus a £2,600 deposit1 to start, and if the court makes an order, the winding up is treated as starting when the petition was presented7, not at the hearing. Use it only on a debt nobody disputes, owed by a company that ignored a statutory demand and could pay.
England and Wales only. WolfX is software, not a law firm.
What you can add
A £14,200 debt: what it costs to start a petition
Say a company owes you £14,200 on an invoice that fell due on 15 July 2026. On 25 August 2026 you leave a statutory demand at its registered office, and the 21 days end on 15 September 2026 with no payment, no offer and no reply. To present the petition you pay in two sums. The advert, a process server and any solicitor come on top:
Just over a fifth of the £14,200. A court claim for the same debt costs a £710 fee11, 5% of the claim, a little more with interest added. A petition puts the company under pressure to find the money. That helps only if it has some: if not, what is paid out comes from selling its assets. The deposit is security for the official receiver's fee10. It comes back, less £50, if the petition is withdrawn or dismissed, and after an order except to the extent the company's assets cannot cover that fee. You might get the fees back1 if the company can afford to repay them.
The road ahead
Seven steps. £2,952 to start.
Step 1: Run the safe-to-petition check
Go on only if all four are true: the debt is clear, more than £7505 and has no real dispute; the company is registered in England or Wales; no liquidator, administrator or other insolvency practitioner is already involved; and its filed accounts show assets worth sharing.
A company that has been served a demand can ask the court to stop a petition4. What to do when an invoice is disputed has its own page.
Step 2: Serve a statutory demand and wait 3 weeks
An unpaid statutory demand5 is the usual proof the company cannot pay: the company has 3 weeks (21 days) from the day the demand is left at its registered office to pay or settle. A judgment that enforcement could not collect also works.
Expect a payment, an offer or silence. Only silence, or an offer you cannot reasonably accept, takes you on. The demand has its own page, including how long you have to follow it up.
Step 3: Search for a pending petition and pick the court
Before you file, you must search for a pending petition. If one exists, give notice and support it8 at its hearing: a second is for exceptional cases, and you may pay its costs9. Searching the Gazette has its own page.
Find the company's paid-up share capital on Companies House. £120,000 or more2 goes to the High Court, online. Under that, it is the court nearest the registered office that deals with bankruptcy2.
Step 4: File Comp 1 and Comp 2, and pay in
Fill in Comp 1 (3 copies) and Comp 2, giving the demand's amount and the date it was served, or the judgment's details. GOV.UK suggests legal help2 with the forms, which means a solicitor who does insolvency work.
Pay the £352 court fee and the £2,600 deposit1. If you file online, the deposit is paid separately: an email tells you how2. The petition counts as presented only when both are paid9.
Step 5: Serve the petition on the company
Once you have the court's copy, serve it on a director or employee2, or leave it at the company's office if you cannot hand it over. Send the court a certificate of service.
If the court makes an order, anything the company pays out or sells after the petition was presented, including a payment to you, is void unless the court orders otherwise6. The company can ask the court to approve payments9 before the hearing, such as wages.
Step 6: Advertise it in The Gazette
Place the advert no sooner than 7 working days after you serve the petition, and at least 7 working days before the hearing8. So the company has at least those 7 working days to pay before anything is advertised.
Send the court a copy and form Comp 3 at least 5 working days before the hearing3. The court may dismiss a petition whose notice is wrong or late8.
Step 7: Go to the hearing
By 4:30pm the day before, give the court a list of who is attending3. If the company pays, or agrees how it will pay, you can withdraw the petition4 with the court's permission9.
If the court makes a winding-up order, an official receiver takes charge3 and the company's bank account is usually frozen4. Its assets are sold and the money is paid out to the creditors who register.
The letter
The paper before a petition is the statutory demand, which has its own page with a covering note, and the petition itself is a court form.
When not to bother
When it isn't worth it
- The company disputes the debt. If the court sides with the company, the starting point is that the loser pays the winner's costs12. Take a disputed invoice to a claim, where a judge decides.
- The company has few assets. Your £2,600 deposit pays the official receiver's fee10 to the extent the assets cannot. Read the filed accounts first.
- The debt is small beside £2,952. On a £2,500 debt the petition costs more to start than you are owed, while a court claim costs £11511. Start with a claim.
- A liquidator or administrator is already in. Send your claim to the person running the company. Liquidation and administration each have their own page.
- They are a sole trader or a Scottish company. A petition is for companies, and Scotland has different rules1. A sole trader can be made bankrupt instead.
The Wolf's note
A petition is a lever, and a lever needs something to move. Check that the debt is clear and the company has something to give before you pay in £2,952. After that, the next move is the company's.
Mr. Wolf · the AI inside WolfX
What comes next
Your next move
What is a statutory demand, and when should I use one?
Only for debts nobody disputes.
6 min read · Letter included
If they go under
Who gets paid first when a company can't pay its debts?
Suppliers come near last.
6 min read
Before you chase
How do I search the Gazette for winding-up petitions?
Filter The Gazette's free insolvency notices to petitions to wind up a company.
5 min read
Don't want to do this yourself?
The Wolf does every step for you. He works out the sums, writes the letters and keeps track of every date. Nothing goes without your yes.