If you’re unsure about the winding up petition timeline, read on to discover exactly what happens at each stage.
Receiving a winding up petition can feel like a business owner’s worst nightmare, and for good reason. It’s one of the most serious legal actions a creditor can take and, if left unchallenged, can quickly lead to the forced closure of your company. But while the situation is serious, it’s also manageable if you understand the timeline and take early action.
In this blog, we’ll walk you through the winding up petition timeline, from the moment the petition is issued to the final court decision. You’ll learn what happens at each stage, what you need to do, and how McAlister & Co can support you every step of the way.
What Is a Winding Up Petition?
First things first, what is a winding up petition? A winding up petition is a formal request made by a creditor to the court to close down your company due to unpaid debts. It is the start of a legal process that can lead to compulsory liquidation, where your company’s assets are sold and the business is shut down.
Any creditor owed £750 or more can issue a winding up petition, and once it is filed and served, things can move quickly. That’s why knowing the winding up petition process is crucial to preserving your options and avoiding irreversible damage.
The Winding Up Petition Timeline
Day 0: Petition Filed at Court
The process begins when a creditor files a petition with the court requesting that your company be wound up. This is typically done after previous attempts to recover the debt such as reminder letters, court judgments, or statutory demands have failed.
What you need to know: You may not know a petition has been filed until it’s served. The court doesn’t inform you - only the creditor does.
Days 1–2: Petition Served on Your Company
Once the petition is sealed by the court, it must be formally served on your company, usually in person at your registered address. This is your official notice, and the start of a very short response window.
What you should do: Do not ignore it. Although it can be tempting to bury your head in the sand, it’s important that you act fast. From this point, you have seven days to take action before the petition can be advertised publicly, at which point banks may freeze your company’s accounts.
Days 3–7: Your Critical Response Window
This is the most important part of the winding up petition timeline. You now have up to seven calendar days from the date of service to act before the petition is advertised in The Gazette, a public record that notifies banks, suppliers, customers, and other creditors.
The petition can be advertised any time up to seven days before the scheduled hearing, so it is important to act fast. At McAlister & Co, we are well practised at negotiating the delay in advertising the petition and ensuring you have time to put a plan in place.
During this time, you can:
- Pay the debt (if possible)
- Negotiate a payment plan
- Dispute the debt (if it’s incorrect or already settled)
- Work with an insolvency practitioner to prepare a formal rescue (e.g. CVA or administration)
- Apply to court to dismiss or adjourn the petition
- Your company’s bank accounts are likely frozen
- Suppliers, customers, and other creditors may find out
- Other creditors can “support” the petition or start action of their own
- Whether the debt is genuine and unpaid
- Whether any defence has been submitted
- Whether a rescue or repayment plan is in place
Why it matters: Once the petition is advertised, the damage to your business, reputation, and cash flow may be immediate and difficult to reverse.
Day 8: Petition Advertised in The Gazette
If no action is taken within seven days, the petition is advertised in The London Gazette, making it public knowledge. This is often when the real disruption begins.
What usually happens next:
What you can do: It may still be possible to stop the process - but it becomes more complicated. You’ll need specialist advice and may need to apply to court for an adjournment or seek a formal insolvency solution. At this stage, it is also possible to arrange an application for a validation order to be put forward, allowing you to trade in the interim.
Weeks 4–10: Court Hearing Date Set
Roughly 8–10 weeks after the petition is filed, a court hearing is scheduled. At this hearing, a judge will decide whether to grant a winding up order. This decision is based on:
If no action is taken: The court is likely to grant the winding up order, and your company will be placed into compulsory liquidation.
If action has been taken: The court may adjourn the hearing to give time for a rescue solution or dismiss the petition entirely.
After the Hearing: What Happens Next?
If the petition is dismissed
The matter is closed, and your business can continue operating. You may still need to repair relationships with suppliers or banks, but the threat is removed.
If the hearing is adjourned
You’re granted additional time to propose a formal solution, such as a company voluntary arrangement (CVA) or administration.
If a winding up order is made
If a winding up order is made, your company enters compulsory liquidation immediately. A liquidator is appointed to sell assets, investigate company affairs, and distribute any available funds to creditors. The business is closed and will eventually be struck off the Companies House register.
What Should You Do if You Receive a Winding Up Petition?
The moment you are served, you need to act fast. Here’s your step-by-step guide:
- Seek advice immediately - Speak to a licensed insolvency practitioner within 24-48 hours.
- Review the petition - Check the details and see if there are grounds to challenge it.
- Avoid advertisement - Try to resolve the issue before the seven-day window closes.
- Explore rescue options - CVAs, administration, or a negotiated settlement may halt the petition.
- Protect your position as director - Failing to act responsibly may result in personal liability or disqualification.
How McAlister & Co Can Help
At McAlister & Co, we specialise in supporting directors through the winding up petition process, offering fast, confidential, and expert advice when you need it most.
We can help you assess the petition and your financial position, negotiate with creditors or challenge the petition and prevent the petition being advertised. Additionally, we can also help arrange formal rescue solutions like CVAs, administration, or pre-pack administration, or even manage a voluntary liquidation if closure is the best option.
Our team understands the pressure you’re under, and we’re here to help you navigate it with confidence and clarity.
Need Further Advice About the Winding Up Petition Timeline?
The winding up petition timeline moves fast, but so can you. Understanding what happens and when puts you in a far stronger position to act decisively and protect your business. If you've been served with a winding up petition, don’t delay. Contact McAlister & Co today for expert, no-obligation advice.