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You have received a winding-up petition. You have about seven working days.

What a winding-up petition is, why the advertisement date matters more than the hearing, the four ways it ends, and what to do with each of the next seven days.

Directors Lifeline editorial teamLast reviewed 4 November 2026

What has actually happened

A creditor has issued a petition saying the company cannot pay its debts and asking for it to be wound up. It has been served on the company, usually by hand at the registered office. The petitioner must advertise it in the Gazette at least seven working days after service and at least seven working days before the hearing. The day it is advertised, every other creditor can join in and the bank freezes the account, because any payment out after that can be reversed by a liquidator.

The four ways it ends

  1. You pay the debt and the petitioner’s costs. Fastest if the money exists. Costs on an HMRC petition typically run £3,500 to £5,000, because the court fee and the Official Receiver’s deposit alone are around £3,000.
  2. You dispute the debt. Only works if the dispute is genuine, evidenced, and was raised before the petition. A solicitor applies to restrain the advertisement, which must happen before the petitioner advertises.
  3. You put the company into a process of your own. A creditors’ voluntary liquidation or administration before the hearing lets you choose the practitioner and deal with all creditors at once. The most common outcome for a company that is insolvent.
  4. The company is wound up. The Official Receiver takes over and investigates the directors with no input from you. This is what happens if you do nothing.

What not to do

  • Do not move money to a new account to keep trading. Dispositions after the petition is presented can be void and will be traced.
  • Do not pay the petitioner from money that leaves other creditors worse off if liquidation is coming anyway.
  • Do not ignore the hearing. A winding-up order takes minutes if nobody attends.
  • Do not assume a phone agreement with HMRC stops the petition. Get written confirmation it will be withdrawn.

What to do today

  1. Read the petition. Note the petitioner, the amount, the hearing date and the earliest advert date.
  2. Decide which of the four outcomes you are aiming for.
  3. Stop direct debits that will bounce and do not move money out.
  4. Speak to a licensed practitioner today. Every option above is easier with one involved and most need one.
Nothing on this page is advice. We are an information service. When you want someone who can act, we introduce you to a licensed insolvency practitioner. The first conversation is free. The practitioner pays our referral fee; you pay nothing.

Questions directors ask

Can the petition be stopped?
Yes: by paying the debt and costs, by a genuine dispute raised before the petition, or by putting the company into a voluntary process before the hearing. All three depend on acting before the advert.
Will I be personally liable for the petition debt?
Not unless you guaranteed it. The personal risk comes from what happens next: wrongful trading, preferences, an overdrawn loan account and the Official Receiver's investigation.
My account is already frozen. Is it too late?
Too late to avoid the advert, not too late to choose the outcome. A validation order can unfreeze specific payments and a CVL can still start before the hearing.

Guides on this

You've received a winding-up petition: the 7-day checklistCan a winding-up petition be stopped?Statutory demand from HMRC or a supplier: what it means

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