Will my bank accounts be frozen if I receive a winding-up petition?
Not immediately. Accounts are typically frozen when the petition is advertised in The Gazette - which the petitioner can do seven days after service. This is why the seven-day window matters so much. Once the advertisement appears, most banks freeze accounts automatically as a matter of policy, making it extremely difficult to continue paying staff or suppliers.
Can I still choose a CVL after receiving a winding-up petition?
Potentially, yes - but it becomes significantly more urgent and complicated once a petition is issued. The earlier you act after service, the better. Once the petition has been advertised in The Gazette, a CVL becomes much harder to implement. We can assess your position quickly and tell you honestly whether it is still possible.
What happens if I ignore a winding-up petition?
Ignoring a petition is one of the most damaging things a director can do. The petition will be advertised, accounts will be frozen, and the court will almost certainly grant a winding-up order. The Official Receiver will then investigate the directors' conduct - including why no action was taken after service. Ignoring a petition does not make it go away; it removes the options that were still available.
What happens to my staff in a compulsory liquidation?
Employees are made redundant when the winding-up order is granted. They are entitled to claim redundancy pay, unpaid wages, holiday pay, and notice pay from the government's Redundancy Payments Service. Acting before the order is made gives you considerably more control over how this is handled and communicated to your team.
What happens if I have given personal guarantees to lenders?
Liquidation closes the company but does not erase personal guarantees. If the company cannot repay a guaranteed debt, the lender will pursue you personally regardless of the liquidation. We will review any guarantees you have signed as part of our initial conversation.
Am I personally liable for my company's debts in a compulsory liquidation?
Directors are not automatically personally liable for company debts - limited liability protects most directors in most circumstances. However, the Official Receiver's investigation can surface exceptions: personal guarantees, overdrawn directors' loan accounts, and findings of wrongful trading. Directors who continued trading after recognising insolvency without seeking advice are most at risk. Acting now - even at this stage - reduces that exposure.
Can I put my company into a CVL if HMRC has already issued a petition?
Potentially - but timing is everything. The earlier you act after receiving the petition, the more likely a voluntary route remains available. Once the petition has been advertised in The Gazette, options narrow significantly. We can tell you quickly whether a CVL is still possible in your specific situation.
How long does the compulsory liquidation process take?
The court process from petition to winding-up order typically takes several weeks, depending on whether the hearing is contested. Once the Official Receiver is appointed, the full process of asset realisation and director investigation can take from six months to over a year, depending on the complexity of the case.
