Guide

Wind up a company that owes you money

Last updated: 8 November 2017

Before you petition the court

You'll normally need to instruct a solicitor to handle the winding-up petition. You must be able to:

  • prove the company owes more than £750 (to one or more creditors)
  • prove the company can't repay what they owe

It can be proved that a company can't pay its debts if:

  • a creditor owed over £750 serves the company with a 'statutory demand' - form 4.1 (Scot) - which the company does not comply with within 3 weeks
  • a creditor obtains judgment against the company and execution is unsatisfied (there are not enough assets or funds to clear the debt)
  • the company can't pay its debts when they are due
  • the company's total debts exceed its total assets

You need certain details about the company (eg the registered office address) - you can get these from Companies House.

You can use a statutory demand. This is a formal request for the debt to be paid. You can petition the court if the company:

  • doesn't respond to the statutory demand within 21 days
  • breaks a written promise to pay the debt
Wind up a company that owes you money
Before you petition the court