Close Menu
No.1 in UK for Limited Company Liquidations
UK Liquidators

Can I adjourn or stop a winding-up petition?

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Understanding your options when faced with a winding-up petition

A winding-up petition represents one of the most serious actions a creditor can take against a business. It results in court-ordered compulsory liquidation unless you take swift action to save your company. So what does it mean when a creditor serves a winding-up petition, and can you adjourn or stop it?

What is a winding-up petition?

When a creditor has unsuccessfully attempted to recover a debt of £750 or more over a period of time, they can petition to wind-up their debtor under the belief that your company is insolvent. Once a winding-up petition is presented you need to act very quickly, as you only have seven days in which to stop the petition or have it adjourned.

A crucial point in the timeline for stopping or adjourning a winding-up petition is when it’s publicly advertised in the Gazette. If it reaches this stage, it means your business accounts will be frozen by your bank to minimise their risk of loss.

So how do you adjourn or stop a winding-up petition?

Adjourning a winding-up petition

If you have good reason, you can apply to the court for an adjournment. You may need more time to gather evidence for disputing the debt before the court hearing date, for example.

Seeking licensed insolvency help is crucial when trying to adjourn or stop a winding-up petition, however, and can lead to the company entering a formal insolvency procedure that protects it from liquidation. If it’s put to the court that a licensed insolvency practitioner is helping your business deal with the situation, you may be granted an adjournment whilst arrangements are put in place.

If you have tax arrears, a licensed IP could help you apply to HMRC for a Time to Pay arrangement (TTP). This allows arrears to be repaid in instalments, and could free up cash to pay the creditor who has instigated the winding-up petition.

Stopping a winding-up petition before it’s advertised in the Gazette

There are several courses of action you can take before the petition is advertised in the Gazette, including:

Pay your creditor in full

Repaying the debt in full, including the creditors’ costs for the petition, should stop it becoming public knowledge, but you need to act very quickly.

Enter company administration

When your company enters administration, any ongoing legal action must cease – this moratorium remains in place for eight weeks, and allows a licensed insolvency practitioner to plan for the future of the business.

Enter into a Company Voluntary Arrangement (CVA)

A CVA restructures your debts and allows for a single, affordable monthly repayment to be made. If your business is deemed viable for the future by a licensed IP, you remain in control of the company with a view to trading your way out of financial difficulty.

Dispute the debt

If you have a legitimate dispute about the amount of the debt, or whether the debt even exists, you can dispute the debt at court. This is only advisable with clear evidence supporting your standpoint, as you could be accused of misleading the court.

Stopping a winding-up petition after it’s been advertised

If the winding-up petition has already been advertised in the Gazette, your options for stopping or adjourning the petition are reduced. If action is not taken, ahttps://www.ukliquidators.org.uk/company-liquidation/what-is-a-winding-up-order-and-can-it-be-challenged winding-up order will be made against your company and compulsory liquidation will quickly follow.

You can still dispute the debt if you have strong evidence the amount is incorrect or that you’ve already paid it.

You can enter company administration, and may also be able to negotiate a Company Voluntary Arrangement if you’re eligible, but 75% of creditors (by debt value) need to vote in favour of this.

Obtaining professional assistance quickly is the key to adjourning or stopping a winding-up petition, and UK Liquidators can provide the professional guidance you need. Please contact one of the team to arrange a free, same-day consultation to quickly assess your best options – we operate from an extensive network of offices around the UK.

Jonathan Munnery
Partner

If you are considering liquidation for your limited company, taking advice from a licensed insolvency practitioner can help you understand your options.

Is liquidation the right option for you?

Take our 60 second test and find out

Company health risk assessment
Types of liquidation available
Alternatives to liquidation
Understand your next steps
60 Second Liquidation Test
Pages related to Understanding your options when faced with a winding-up petition
I want to liquidate my business, what is the process?
Can I be investigated if my company goes into liquidation?
Can I close a company with debts?
Compulsory Liquidation vs Creditors’ Voluntary Liquidation
How can I stop a creditor putting my company into liquidation?
How do I know when it’s time to liquidate my company?
Did you know?
Are you eligible to claim Director Redundancy?
As a Limited Company Director you may be entitled to claim Director Redundancy - Average UK claim is £9,000*.
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout

Looking for immediate support?

Complete the below to get in touch

 
 
 
 
 
100% Free & Confidential Advice