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 are successful:
- the company assets are sold
- any legal disputes are settled
- the company collects money it is owed
- funds are paid to you and any other creditors
You might not get all or any of the money you are owed.
There are also other ways to recover money that you are owed. You can get a debt specialist (like a solicitor) to help you recover debt.
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.