At a winding-up petition hearing, what to expect is usually a short court hearing, often just a few minutes long, where a judge decides whether to make a winding-up order against your company or give it more time. This guide explains what actually happens on the day, who is in the room, and the range of outcomes a director should be ready for.
If you have a hearing date in your diary, the uncertainty is often worse than the hearing itself. Most winding-up petition hearings are dealt with quickly, in a list alongside several other cases, and many now take place remotely rather than in person.
Where the winding-up petition hearing takes place and how long it lasts
Winding-up petitions against companies are heard in the Insolvency and Companies List of the Business and Property Courts, or in a Business and Property Courts hearing centre outside London. Many hearings are now conducted by telephone or video link rather than in a physical courtroom, so check your hearing notice carefully for the dial-in or link details.
Individual petitions are typically listed in a batch with several others on the same court list. Unless your case is contested or complicated, the actual hearing before the judge usually lasts only a few minutes. Waiting for your case to be called can take longer than the hearing itself. The grounds a court can wind up a company on are set out in section 122 of the Insolvency Act 1986.
Who attends and who speaks
A District Judge or Insolvency and Companies Court Judge hears the list, following the court's own guidance for the Insolvency and Companies List. The petitioning creditor (often HMRC, or another creditor owed money) is usually represented by a solicitor or agent, who confirms the debt remains unpaid and that the petition has been properly advertised.
The company can be represented by a director, or by a solicitor or counsel instructed on its behalf. You are not required to speak unless you want to raise a point, oppose the petition, or explain why more time is needed. Supporting or opposing creditors, if any have registered an interest, may also attend or have their position noted.
The possible outcomes: order, dismissal, adjournment
There are three broad outcomes at a winding-up petition court hearing:
- A winding-up order is made. The judge is satisfied the debt is genuinely owed and unpaid, and orders the company into compulsory liquidation. The Official Receiver is then appointed and the company's assets and affairs pass out of the director's control.
- The petition is dismissed. This can happen if the debt has been paid, is genuinely disputed, or the petition was defective in some way.
- The hearing is adjourned. The judge gives more time — for example, so the company can pay, agree a repayment plan, or arrange a formal restructuring option such as a company voluntary arrangement.
Our article on what happens after a winding-up petition covers each of these outcomes and the practical steps that follow in more detail.
How supporting creditors can change things
Other creditors owed money by the company can support or oppose the petition before the hearing. A supporting creditor effectively joins the petitioning creditor's position, which can strengthen the case for a winding-up order even if the original debt is later resolved.
An opposing creditor, or the company itself, can file evidence disputing the debt or setting out reasons the petition should not proceed. If you believe the debt is wrong or disputed on genuine grounds, this needs to be raised formally and in good time before the hearing — our guide on how to oppose a winding-up petition explains the process.
Whether you need to attend or be represented
You are not legally required to attend in person, but if nobody appears for the company and the debt is not disputed, the judge is likely to make the winding-up order in your absence. If you want to argue against the petition, ask for time, or explain steps already being taken, someone needs to represent the company's position — either you, or a solicitor instructed on your behalf.
Directors who are unsure whether to attend, and companies weighing up an adjournment, often benefit from speaking to a regulated insolvency practitioner or solicitor before the hearing date, rather than on the day itself.
How to prepare in the days before
Preparation makes the hearing far less daunting. In the days before, it helps to:
- Confirm the exact hearing time, court, and whether it is in person, by phone, or by video link.
- Gather evidence of the debt position — invoices, correspondence, payment history, and any dispute correspondence.
- Speak to a regulated insolvency practitioner or solicitor about your realistic options, including repayment, restructuring, or a formal adjournment request.
- Check The Gazette's notice search to confirm what has been advertised about the petition, since advertising affects the company's bank accounts and credit position.
- Decide, with proper advice, whether you will attend, instruct a solicitor to attend, or seek an adjournment of the winding-up petition in advance.
Once a petition is advertised in The Gazette, banks routinely freeze company accounts, so acting early matters more than what happens in the few minutes before the judge.
Frequently asked questions
What happens if I don't turn up to the hearing?
If nobody represents the company and the debt is not disputed, the judge will usually proceed to make a winding-up order in the company's absence. Non-attendance does not stop the hearing going ahead.
Can I settle the debt on the day of the hearing?
Yes, in principle — if the debt is paid or a formal agreement is reached with the petitioning creditor before the hearing, the petition can be withdrawn or dismissed. This needs to be confirmed with the creditor's solicitor beforehand wherever possible, as last-minute arrangements are harder to evidence in court.
How quickly does the judge decide?
For straightforward, undisputed petitions, the decision is often given on the spot, within minutes of the case being called. More complex or contested cases, including those with an adjournment application, may take longer or be listed for a further hearing.
Do I need a solicitor at the hearing?
It is not a legal requirement, but if you intend to oppose the petition, dispute the debt, or ask for an adjournment, having a solicitor represent the company gives your position a much stronger footing before the judge.
What happens immediately after a winding-up order is made?
The Official Receiver, part of the Insolvency Service, is appointed and takes control of the company. Directors lose the power to manage the company's affairs, and staff, banks, and suppliers are typically notified once the order is advertised.
This article is general information, not legal, financial or insolvency advice, and every company's circumstances are different. If you have a winding-up petition hearing coming up, Harbourfirst can introduce you to a regulated insolvency practitioner or solicitor who can advise on your specific position — start an enquiry.