WHAT IS A WINDING-UP PETITION?
When a company can pay but won't, insolvency action gets their attention fast.
For larger, undisputed debts, a statutory demand followed by a winding up petition (for companies) or a bankruptcy petition (for individuals) puts real pressure on a debtor to pay. A great many debts are settled the moment a statutory demand is served, because no business wants the threat of compulsory liquidation hanging over it. It signals you're serious and that you have the funds and resolve to see it through.
This is the heaviest tool in the box, so it isn't right for every debt. We'll usually start with our wider commercial debt recovery service and a firm letter before action, then escalate to insolvency proceedings only when they're the right fit. You can read the official process on GOV.UK's guide to winding up a company that owes you money.
How we help
Statutory demands
We draft and serve a formal statutory demand setting out exactly what's owed and giving the debtor 21 days to pay. It's often the cheapest, quickest way to prompt payment in full.
Winding-up petitions (companies)
If a company still won't pay, we prepare and issue a winding-up petition at court, advertise it where required, and represent you through to a winding-up order.
Bankruptcy petitions (individuals)
Where the debtor is an individual or sole trader who owes £5,000 or more, we can pursue a bankruptcy petition using the same statutory-demand-first approach.
Checking the debt is undisputed
Before we go anywhere near a petition, we make sure the debt is genuinely undisputed. Using insolvency to pressure a debtor over a disputed sum is an abuse of process and can backfire badly.
21-day deadline pressure
The 21-day clock that a statutory demand starts is a powerful motivator. We track every deadline and keep the pressure steady so the debtor knows you mean business.
Recovering what you're owed
Our aim is always to get you paid in full, ideally before a petition is ever heard. Where liquidation does follow, we help you submit your claim and pursue every available recovery.
You may have a claim if…
You're owed a substantial, undisputed debt
The debtor is a company (winding-up) or an individual (bankruptcy)
The debt is over the statutory threshold
Other recovery steps have not worked
How your claim works
01
Free assessment
Tell us who owes you what. We'll check the debt is undisputed, confirm the threshold is met, and advise honestly on whether insolvency action is the right route.
02
We serve a statutory demand
We draft and properly serve a statutory demand, giving the debtor formal notice to pay within 21 days or face a petition.
03
21 days to pay
Most debtors pay during this window rather than risk liquidation or bankruptcy. We chase, negotiate where sensible, and keep you updated throughout.
04
Petition if still unpaid
If they ignore the demand, we issue the petition at court and represent you to the hearing, pressing for payment or a winding-up or bankruptcy order.
Insolvency & winding-up FAQs
What is a winding-up petition?+
A winding-up petition is an application to the court to compulsorily liquidate a company that can't or won't pay its debts. If the court grants a winding-up order, the company is closed down, its assets are sold by a liquidator, and the proceeds are shared among creditors.
What debt level is needed?+
To wind up a company, the debt generally needs to be more than £750. To make an individual bankrupt, the debt usually has to be £5,000 or more. We'll confirm the current thresholds and check yours qualifies before taking any step.
What is a statutory demand?+
A statutory demand is a formal written demand for payment that gives the debtor 21 days to pay the debt or reach an agreement. If they don't, it can be used as evidence that they're unable to pay, which supports a winding-up or bankruptcy petition.
Can I use this for a disputed debt?+
No. Using a statutory demand or petition for a debt that is genuinely disputed on substantial grounds is an abuse of process. The court can dismiss it and order you to pay costs. If the debt is disputed, mediation or another form of dispute resolution is the right path instead.
Will I get my money if the company is wound up?+
Possibly, but not always in full. Once a company is wound up you become one of several creditors, and secured creditors and certain priority claims are paid first. That's why we push hard to get you paid before a petition is ever heard, when the chance of full recovery is highest.
Is this the right step for me?+
Insolvency action is a serious last resort, not a routine chaser. We'll only recommend it where the debt is substantial, undisputed and unpaid despite earlier steps, and we'll always tell you honestly if a different route would serve you better.
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