Winding Up Petition: What To Do in the Next 72 Hours

Last month, I spoke with a director who had just received a winding up petition from a supplier over an unpaid invoice of £34,000. He was shocked, anxious, and unsure where to turn. His company’s bank account was at risk of being frozen, and he feared for his staff and business. If you’re in this position, you’re not alone — and there are steps you can take right now to protect your company.

Why Speed Matters: The 72-Hour Window

Once a winding up petition is served, you have a very short window before it’s advertised in The Gazette — usually after 7 days. Once advertised, your company’s bank accounts can be frozen, making it almost impossible to trade. Acting quickly is crucial to keep your options open.

First Steps: What To Do Immediately

1. Don’t ignore the petition. Contact the creditor to see if a settlement or payment plan is possible. Sometimes, creditors are open to negotiation if you show willingness to resolve the debt.
2. Speak to your bank. Let them know about the situation. Some banks may freeze accounts as soon as they see the petition advertised, so early communication is key.
3. Get professional advice. I recommend booking a free consultation immediately. The sooner you act, the more options you have.

What Are My Options?

Depending on your company’s situation, you may be able to:

• Dispute the debt if you believe it’s incorrect
• Pay the debt in full or agree a payment plan
• Enter a Company Voluntary Arrangement (CVA) to restructure debts
• Consider voluntary liquidation if rescue isn’t possible

Each option has pros and cons. For example, a CVA can stop legal action and allow you to continue trading, while liquidation may be the best route if the company is no longer viable. You can read more about company administration as another potential rescue route.

Common Mistakes to Avoid

• Ignoring the petition or hoping it will go away
• Transferring company assets after the petition is served
• Paying one creditor over others (this can be challenged later)
• Delaying seeking advice — time is not on your side

Key Takeaways

• Act fast — the first 72 hours are critical
• Contact your bank and creditors immediately
• Seek advice from a licensed insolvency practitioner like myself
• Consider all rescue and closure options
• Don’t make payments or asset transfers without advice

FAQs

What happens if I ignore a winding up petition?

The court may make a winding up order, leading to compulsory liquidation and loss of control over your company.

How soon can my bank account be frozen?

Accounts can be frozen as soon as the petition is advertised in The Gazette, typically 7 days after service.

Can I stop the petition if I pay the debt?

Yes, if you pay the debt in full (including costs) before the hearing, the petition can be withdrawn.

Is it possible to dispute the petition?

If you have genuine grounds to dispute the debt, you can apply to court to challenge the petition.

What professional help should I seek?

Contact Chris Worden at Director First for tailored advice.