Winding Up Petition Cost Calculator

A winding up petition is a legal application to the court to force a company into compulsory liquidation. It can be presented by a creditor owed at least £750, a director, or a shareholder. Once advertised in the London Gazette, the company's bank accounts are typically frozen. If the court grants the order, the Official Receiver takes control of the company and its assets are realised to pay creditors.

From petition to winding up order typically takes 8-12 weeks. After the order, the liquidation process can take 12 months to several years depending on the complexity of the company's affairs. The Official Receiver will investigate the company's dealings and the conduct of its directors. Simple cases may be concluded in 12-18 months; complex cases can last 3-5 years.

Yes, a winding up petition can be stopped by: paying the debt in full before the hearing, reaching an agreement with the creditor to withdraw, applying to have the petition dismissed on grounds it is disputed, or proposing a Company Voluntary Arrangement (CVA). Time is critical — once the petition is advertised in the London Gazette, bank accounts are typically frozen immediately.

Directors face investigation by the Official Receiver into their conduct. If found to have acted improperly (wrongful trading, fraudulent trading, or breach of duties), they can be disqualified for 2-15 years, made personally liable for company debts, and in serious cases, face criminal prosecution. All directors must cooperate fully with the Official Receiver.

A Creditors' Voluntary Liquidation (CVL) is initiated by the company's directors when they recognise the company is insolvent. A compulsory liquidation is forced by a creditor through a winding up petition. CVLs are generally quicker, cheaper, and allow directors to choose the insolvency practitioner. Compulsory liquidation involves the Official Receiver and can trigger more intensive director investigations.