What Is a Winding Up Petition? A Complete Guide for Company Directors
If you are a company director in the UK, facing financial pressure from creditors can be stressful. One of the most serious legal actions a creditor can take against your business is filing a winding-up petition. Understanding what this means, how the process works, and what your options are is crucial to protecting your company and avoiding permanent closure. This guide explains what is a winding up petition , its implications, and what steps directors should take if they are served with one. What Is a Winding Up Petition? A winding up petition (WUP) is a formal legal action taken by a creditor who is owed £750 or more and believes the company is unable to pay its debts. It is filed at the High Court to request that the company be “wound up” (liquidated). In simple terms, it is an application to close the business, sell its assets, and distribute the proceeds to creditors. The creditor must have first attempted to recover the debt through normal channels, such as sending invoices, rem...