You can apply to the court to close or ‘wind up’ a company if it cannot 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 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 ‘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

There are also other ways to recover money that you’re owed. You can get a debt specialist (like a solicitor) to help you recover debt.

Fees

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.

Scottish companies

There are different rules on winding up a company in Scotland.