Overview
You can apply to the court to close or âwind upâ a company if it cannot pay its debts. This is also known as compulsory liquidation.
To wind up a company you must:
- be owed ÂŁ750 or more
- be able to prove that the company cannot pay you
You need to fill in forms and send them to the right court to apply to wind up a company.
Your application to the court is known as a âwinding-up petitionâ. If youâre successful:
- the company assets are sold
- any legal disputes are settled
- the company collects money itâs owed
- funds are paid to you and any other creditors
You might not get all or any of the money youâre owed.
There are also other ways to recover money that youâre owed. You can get a debt specialist (like a solicitor) to help you recover debt.
Fees
The fees are:
- ÂŁ280 – court fees
- ÂŁ1,600 – petition deposit (to manage the âwinding-upâ)
You might be able to get the fees back if the company can afford to repay them.
Scottish companies
There are different rules on winding up a company in Scotland.