You can apply to the court to ‘wind up’ a company if it can’t pay its debts of more than £750.
Your application to the court is known as a ‘winding up petition’. If successful, the company will be put into liquidation.
You may not get all or any of the money you’re owed - a debt specialist (eg a solicitor) can help you work out the best way to recover a debt and send your petition.
Before you petition the court
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
You can use a statutory demand to do this. 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
The winding up process is different in Scotland.