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.
The company’s debts must be more than £750.
To petition the court to wind up a company you’ll have to:
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.