Receiving a Winding Up Petition (WUP) is arguably the most stressful event a company director can face. It signifies that a creditor—often HMRC—has lost patience and is asking the court to liquidate your company.

What is a Winding Up Petition?

A Winding Up Petition is a legal notice issued by a creditor owed more than £750. Once issued, it sets a hearing date where a judge will decide whether to grant a Winding Up Order. If granted, the Official Receiver is appointed to liquidate assets and close the business.

The Danger Zone: The Advertisement

Once a petition is issued, there is a 7-day window before it can be advertised in The Gazette. Once advertised, your bank will freeze your company accounts immediately (Section 127 of the Insolvency Act 1986). This stops you from paying staff or suppliers, effectively strangling the business.

How to Stop It

  1. Pay the Debt: If disputed, pay the undisputed amount immediately.
  2. Adjournment: We can petition the court for an adjournment to allow time to arrange finance.
  3. CVA (Company Voluntary Arrangement): A formal agreement to pay creditors over time. This halts legal action.
  4. Administration: Places a protective ring around the company while a restructuring plan is formulated.
Urgent Advice: Do not ignore the petition. You have literally days to act before your bank accounts are frozen. Call us on 0333 898 0409 immediately.

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