Winding-up petition response desk

Served with a winding-up petition? You have about seven working days.

Until the petition is advertised in The Gazette, it can still be paid, disputed, adjourned or overtaken by a rescue, and the bank account is still open. After it is advertised, the account is frozen and every option costs more. A K2 partner calls you back within one working day, reviews the petition with you and works the options in the order that protects the business and you.

Call 020 7720 8000 Request a call back today

Confidential. No charge for the initial assessment. Monday to Friday; if the hearing is this week, phone rather than write.

What happens, and when

The statutory timetable for a petition against a company in England and Wales. Each step narrows the options, which is why the first week matters most.

Day 0

Petition presented and served

A creditor owed £750 or more (most often HMRC) files the petition at court and serves it at the registered office. From this moment any payment or transfer out of the company can be reversed by a liquidator unless the court validates it (section 127 Insolvency Act 1986).
Day 7+

Petition advertised in The Gazette

Not less than seven business days after service, and at least seven business days before the hearing, the petitioner advertises. Banks monitor The Gazette and freeze the account on sight. Other creditors can now join the petition, so it cannot simply be withdrawn by paying the original debt.
Weeks 2 to 6

The negotiating window

Payment in full plus costs, a disputed-debt application, a Time to Pay proposal to HMRC, a validation order to keep trading, an adjournment while refinancing completes, or a formal rescue: a CVA, administration (which suspends the petition) or a restructuring plan.
Weeks 6 to 8

The hearing

The court dismisses the petition, adjourns it, or makes a winding-up order. An order closes the company: the Official Receiver takes control, a liquidator realises the assets, and the directors' conduct is reported on. Personal guarantees are called in.

The options, in the order we test them

Which one fits depends on three things: whether the debt is genuinely owed, whether the business is viable without it, and how much cash can be found in days rather than months.

Route	When it works	What it achieves
Pay the debt and the petitioner's costs	The debt is owed and the cash exists or can be raised this week.	The petition is dismissed or withdrawn. Once advertised, other creditors who have joined must be dealt with too.
Dispute the debt	There is a substantial dispute, or a cross-claim larger than the debt.	An injunction restraining advertisement, then dismissal. A petition is not a debt-collection tool and courts dislike it being used as one.
Time to Pay with HMRC	HMRC is the petitioner and the arrears are a one-off, not a pattern.	An adjournment while the arrangement is kept. Harder after a petition, so the proposal must be funded and credible.
Validation order	The company must keep trading to pay the debt or complete a sale.	The court authorises specified payments so the bank will release funds and suppliers can be paid.
Adjournment	A refinancing, investment or asset sale is under way and will clear the debt.	Time. Courts give it when there is evidence the money is coming, not on a promise.
CVA or restructuring plan	The business is viable but the balance sheet is not.	Creditors agree to be paid over time or in part; the petition is dismissed once the arrangement is approved.
Administration	The business is worth more alive than wound up, and needs protection now.	A moratorium stops the petition and other enforcement while the business is restructured or sold, including a sale back to the directors where that is the best outcome.

What the petition desk does

Calls you back within one working day and reads the petition with you: who, how much, which court, hearing date, and whether it has been advertised.
Builds the 13-week cash picture in days, so every conversation with the petitioner, HMRC and the bank is backed by numbers.
Negotiates with the petitioning creditor and HMRC, and brings turnaround finance or K2 investment where the business is viable.
Routes the legal steps to solicitors and licensed insolvency practitioners we work with: validation orders, injunctions, CVAs, administration.
Tells you honestly when the right answer is an orderly closure, and how to protect yourself as a director if it is.

Have these to hand when we speak

The petition: petitioner, amount, court, case number, date presented, hearing date.
Whether it has been advertised, and what the bank has said.
A creditor list with HMRC split out by tax (VAT, PAYE, corporation tax).
The last management accounts and a rough view of next month's cash.
Any Time to Pay history, statutory demands or CCJs, and personal guarantees you have signed.

K2 is not a law firm or an insolvency practice. We work alongside the directors and bring in the right professionals for the legal steps. Nothing on this page is legal advice.

Frequently asked questions

How long do I have after a winding-up petition is served?

The petitioner cannot advertise the petition in The Gazette until at least seven business days after it was served on the company, and the advertisement must appear at least seven business days before the hearing. Once advertised, banks almost always freeze the company's accounts, so the seven business days after service are the window in which a petition is most cheaply dealt with. The hearing itself is usually listed six to eight weeks after the petition is presented.

Can I keep paying suppliers and staff after a petition is presented?

Any disposition of the company's property after the petition is presented is void if a winding-up order is later made, unless the court validates it (section 127 Insolvency Act 1986). That covers payments out of the bank account. A company that needs to keep trading applies for a validation order; paying one creditor ahead of the petitioner without one is the kind of payment a liquidator later reverses.

Can HMRC still agree Time to Pay after it has presented a petition?

Sometimes, but it is much harder than before the petition. HMRC will want a credible proposal backed by cash-flow forecasts, usually a substantial payment on account, and evidence that the arrears will not recur. If HMRC agrees, the petition is normally adjourned rather than withdrawn until the arrangement has been kept to.

What happens at the winding-up hearing?

The court can dismiss the petition (if the debt has been paid or is genuinely disputed), adjourn it (to let a payment, a refinancing or a rescue complete), or make a winding-up order. If an order is made the company stops trading, the Official Receiver takes control and a liquidator is appointed to realise the assets and report on the directors' conduct.

Does K2 act as the insolvency practitioner or the solicitor?

No. K2 works on the director's side of the table: reviewing the options, negotiating with the petitioner and HMRC, bringing turnaround finance or investment where the business is viable, and routing the legal steps to solicitors and licensed insolvency practitioners we work with. The initial assessment is at no charge.

Deal with it this week, not at the hearing

Every option is cheaper before the petition is advertised. Call now, or ask for a call back and a K2 partner will phone you within one working day.

020 7720 8000 Request a call back