Wind up a company that owes you money
Overview
You can apply to the court to close or 鈥榳ind up鈥� a company if it cannot pay its debts. This is also known as compulsory liquidation.
To wind up a company you must:
- be owed 拢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 鈥榳inding-up petition鈥�. If you鈥檙e successful:
- the company assets are sold
- any legal disputes are settled
- the company collects money it鈥檚 owed
- funds are paid to you and any other creditors
You might not get all or any of the money you鈥檙e owed.
There are also other ways to recover money that you鈥檙e owed. You can get a debt specialist (like a solicitor) to help you recover debt.
Fees
The fees are:
- 拢332 - court fees
- 拢2,600 - petition deposit (to manage the 鈥榳inding-up鈥�)
You might be able to get the fees back if the company can afford to repay them.
Scottish companies
There are on winding up a company in Scotland.