You can apply to the court to close or ‘wind up’ a company if it can’t pay its debts. This is also known as compulsory liquidation.
To wind up a company you must:
- be owed £750 or more
- be able to prove that the company can’t pay you
To apply, you’ll have to fill in the forms and give them to the court.
Your application to the court is known as a ‘winding-up petition’. If you’re successful:
- the company assets are sold
- any legal disputes are settled
- the company collects money it’s owed
- funds are paid to you and any other creditors
You might not get all or any of the money you’re owed.
The fees are:
- £280 - court fees
- £1,600 - petition deposit (to manage the ‘winding-up’)
You might be able to get the fees back if the company can afford to repay them.
You can pay using cash, postal orders or a building society, bank or solicitor’s cheque made payable to ‘HM Courts and Tribunals Service’.
There are different rules on winding up a company in Scotland.