What Is A Winding Up Order?

A Winding Up Order is a legal instruction issued by the court that forces a company or partnership into compulsory liquidation. It is the final stage of a process that begins when a creditor issues a Winding Up Petition.

Once the order is granted, the company effectively ceases to trade, and control is handed to an Official Receiver or an appointed liquidator to sell assets and repay creditors.

Who Can Seek a Winding Up Order?

Any creditor owed £750 or more who has lost patience with trying to recover payment can petition the court. Usually, the creditor will have first sent a Statutory Demand.

Because the costs are significant, this step is usually reserved for larger debts.  However, in 2025 alone, 3,636 winding up orders were granted in England and Wales.

• Court Fee: £302
• Petition Deposit: £2,600 (Required to cover the Official Receiver’s initial costs)
• Total Initial Cost: Often exceeds £3,500 when including solicitor and process server fees.

The Process: From Petition to Order

The timeline for a Winding-Up Order is strict. Understanding these stages is vital for both creditors looking to “piggyback” on a petition and directors looking to save their business.

1. Service (Day 0): The petition is served at the company’s registered office.
2. The 7-Day Window: The creditor must wait 7 clear days after service before they can advertise.
3. banks will almost always freeze the company’s accounts to avoid liability under Section 127 of the Insolvency Act.
4. The Hearing: Typically 6–10 weeks after filing, a judge hears the petition in court.
5. The Order: If the debt is undisputed, the judge issues the Winding-Up Order, and the company enters compulsory liquidation.

Struggling with Frozen Accounts? If your bank has frozen your accounts after a petition, you may need a Validation Order to continue paying staff or key suppliers while you resolve the debt.

How to Stop a Winding Up Order

If you have received a petition, it is not too late to act, but your options narrow every day.

• Pay the Debt: If the debt is paid in full (plus the creditor’s costs), the petition can be dismissed.
• Company Voluntary Arrangement (CVA): A formal deal to pay creditors back over time. If 75% of creditors agree, the winding-up process is halted.
• Administration: This creates a legal “moratorium” (a shield) that stops all legal actions, including winding-up petitions, to allow for business rescue.
• Injunction: If the debt is genuinely disputed, you can apply for an injunction to stop the petition from being advertised in The Gazette.

What If the Order Has Already Been Made? (The 5-Day Rule)

If you missed the court hearing and a Winding-Up Order has already been issued, you have a very short window to save the company.

You must apply to rescind (cancel) the order within 5 business days. To be successful, you generally need to prove that the company is solvent and can pay the debt in full, or that there was a serious procedural error in the original hearing.

Final Advice

Whether you are a creditor looking to recover funds or a director facing the end of your company, the later you leave it, the fewer options you have. A Winding Up Order is usually the end of the company and business.