Short answer: A winding-up petition asks the court to put a UK company into compulsory liquidation because it cannot pay its debts. For unpaid commercial invoices the usual insolvency ground is inability to pay under Insolvency Act 1986 sections 122(1)(f) and 123, with a £750 threshold on the demand route. A statutory demand is not required before every petition. GOV.UK fees are £352 court fee plus a £2,600 petition deposit, and you may recover little or nothing. Debt Collection UK introduces B2B claims to a partner agency; we are not solicitors and we do not present petitions ourselves.
The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed.
If a UK Ltd, LLP or PLC still owes you after reminders, you will hear about letters before action, county court claims, statutory demands and winding-up petitions. They are different tools. A letter before action is the usual pre-court warning. A county court claim asks the court to decide a money claim. A statutory demand is a prescribed insolvency demand. A winding-up petition asks the court to close the company and appoint a liquidator.
This page is for creditors chasing an unpaid commercial invoice. It is general information for England and Wales, not legal advice. Scotland has different rules. Sources checked on 5 November 2026 include Insolvency Act 1986 section 122, section 123, section 124, GOV.UK winding-up overview, how to apply, and Insolvency (England and Wales) Rules 2016 Part 7 (petition procedure, including verification by statement of truth, deposit and service).
What a winding-up petition is
GOV.UK explains that you can apply to the court to close or “wind up” a company if it cannot pay its debts. That process is also known as compulsory liquidation. Your application is a winding-up petition. If the court makes a winding-up order, company assets are realised, disputes are dealt with in the liquidation, and funds are distributed to creditors according to insolvency ranking. Preferential and secured creditors sit ahead of ordinary unsecured trade creditors. You might not get all or any of the money you are owed.
Under section 122(1)(f), a company may be wound up by the court if it is unable to pay its debts. Section 123 defines that inability: among other grounds, a creditor owed a sum exceeding £750 then due who has served a prescribed demand at the registered office, after which the company neglects for three weeks to pay, secure or compound the debt; an unsatisfied execution; and cash-flow or balance-sheet insolvency proved to the court. Section 124 confirms that any creditor (including a contingent or prospective creditor) may present a petition, subject to the Act.
Insolvency Rules Part 7 covers how a petition is verified by a statement of truth, how the deposit is handled, and how the petition is served. This page summarises primary sources only; it is not a DIY filing checklist.
The £750 threshold (and partner £1,500 practice)
GOV.UK’s creditor overview says you must be owed £750 or more and be able to prove the company cannot pay you. That aligns with the section 123 demand ground. The threshold is an insolvency gateway, not a promise that a petition is commercially sensible for every £751 invoice.
Debt Collection UK introduces B2B files to partner agencies that typically focus on commercial invoices of £1,500 or more. The claim form may still accept smaller amounts. Debtor must be a Ltd, LLP or PLC. The creditor can be any UK business, including a sole trader. Consumer and sole-trader debtors are outside scope.
Statutory demand is not required before every petition
A statutory demand is one route to prove inability to pay under section 123(1)(a). It is powerful where an undisputed liquidated debt sits unpaid after proper service and the 21-day period. It is not the only route. Section 123 also lists unsatisfied execution and proof that the company cannot pay its debts as they fall due, among other grounds. Serving a demand does not force you to petition, and skipping a demand does not bar a petition where another ground is made out.
In practice, many creditors still use a demand because it creates a clear paper trail and a deadline. Use our how and when to use a statutory demand guide and statutory demand vs letter before action before choosing insolvency pressure. If the company is already in a formal insolvency process, ordinary chasing changes — see customer in administration or liquidation.
When a petition is / is not realistic for an unpaid invoice
A petition can be a realistic last step when all of the following tend to be true:
- The debtor is a limited company, LLP or PLC (not a consumer and not a sole trader on this site).
- The debt is a liquidated sum then due — usually a clear unpaid invoice balance — of at least £750, and commercially large enough to justify court fees and deposit.
- The debt is undisputed, or any dispute is not genuine and substantial.
- The company still has trading reputation, banking relationships or assets that make petition publicity painful — so the threat or presentation may produce payment or a settlement before a winding-up order.
- You have already tried proportionate credit control: statement, final demand, letter before action, and usually partner collection or a money claim.
It is usually not realistic where the invoice is genuinely disputed, where there is a serious cross-claim or set-off that extinguishes the debt, where the company has already ceased trading with no assets, or where you cannot fund the GOV.UK fees and related costs. Insolvency process is not a short-cut through a liability fight. If the company can show a substantial dispute, it may seek an injunction restraining presentation or advertisement of a petition, with costs risk for the creditor.
Cost and risk (GOV.UK figures)
According to GOV.UK, the fees are:
- £352 — court fees
- £2,600 — petition deposit (to manage the winding-up)
You might be able to get the fees back if the company can afford to repay them. You might not get all or any of the money you are owed. Advertising a petition is public. Banks and suppliers may react. If a winding-up order is made, a liquidator realises assets for creditors as a class; preferential and secured claims are paid ahead of ordinary unsecured trade creditors. Do not invent recovery rates — there is no typical percentage on this page.
GOV.UK’s apply guidance expects forms Comp 1 and Comp 2, evidence such as a statutory demand or a court judgment, and service of the petition on the company. Where paid-up share capital is £120,000 or more the petition goes to the High Court; under that figure the court depends on the company’s registered office and the court’s bankruptcy jurisdiction. Get legal help before filing. Debt Collection UK does not prepare or present petitions.
Practical ladder for an unpaid company invoice
- Internal chase. Reminder, statement and a clear final demand with a pay-by date.
- Letter before action. A concise LBA that follows pre-action expectations — see letter before action.
- Partner demand or county court. Many clear invoices settle after a partner demand. Alternatively issue a county court claim for a money judgment, then consider CCJ enforcement if needed.
- Statutory demand. Reserved for an undisputed company debt above £750 where insolvency pressure is a considered next step — see statutory demand.
- Winding-up petition. Only with advice, cost visibility (£352 + £2,600 on GOV.UK plus other costs) and a realistic prospect that the ground and the company’s position justify it.
Skipping straight to a petition because it “sounds stronger” often creates dispute risk, publicity and sunk cost without improving recovery. Start where the evidence and the debtor’s conduct justify. The claim form on this page is for instructing a partner on the debt first — not for DIY petition filing.
What we do (introducer only)
Debt Collection UK is a trading name of PASECOM GROUP LTD (company 17139327). We introduce unpaid B2B invoices against UK limited companies, LLPs and PLCs to independent partner agencies, who collect. We are not solicitors, not an FCA-authorised debt collector, and we do not serve statutory demands or present winding-up petitions. Creditors can be any UK business; debtors on files we place must be Ltd, LLP or PLC.
The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed. On a worked example only: if £10,000 is recovered, the fee would be £1,500 and £8,500 would be due to you. That is fee arithmetic, not a promise of recovery. Most claims partners place are £1,500 or more; the form may still accept smaller amounts. Invoice upload is mandatory.
Ready to check or instruct on an undisputed company invoice before considering a petition? Use the claim form on this page, or start from unpaid invoices / business debt collection.
Frequently asked questions
What is a winding-up petition for a company debt?
It is a court application asking the court to put a company into compulsory liquidation because it cannot pay its debts. Under Insolvency Act 1986 section 122(1)(f), the court may wind up a company that is unable to pay its debts as defined in section 123. GOV.UK calls this compulsory liquidation. This page is general information for England and Wales, not legal advice.
What is the minimum debt for a winding-up petition?
GOV.UK states you must be owed £750 or more and be able to prove the company cannot pay you. That mirrors the inability-to-pay ground in section 123. Our partner agencies typically focus on commercial invoices of £1,500 or more. Forms may still accept smaller amounts; buyers' minimums can differ from the insolvency threshold.
Do I need a statutory demand before a winding-up petition?
No. A statutory demand is one route under section 123(1)(a). Section 123 also covers other grounds, including an unsatisfied execution and proof that the company cannot pay its debts as they fall due. A demand is therefore not mandatory before every petition. See our statutory demand page for the 21-day demand route. Take advice before any insolvency filing.
How much does a winding-up petition cost?
GOV.UK lists a £352 court fee and a £2,600 petition deposit to manage the winding-up. You might be able to get those fees back if the company can afford to repay them. You might not get all or any of the money you are owed once preferential and secured creditors are paid. Advertising and legal costs can add further expense. Do not treat a petition as a cheap collection shortcut.
When is a petition realistic for an unpaid B2B invoice?
Usually only for an undisputed, liquidated commercial debt against a Ltd, LLP or PLC that still has something to lose from publicity and a court order. It is a poor fit where the debt is genuinely disputed, where there is a serious cross-claim, or where the company is already hopelessly insolvent. Partner collection, a letter before action or a county court claim is usually the proportionate first step.
What if the debt is disputed?
Do not present a petition as a pressure tactic on a genuine dispute. Courts treat insolvency process as unsuitable for resolving substantial contested liability. The company may apply for an injunction restraining presentation or advertisement. Pause hard escalation, particularise the dispute, and consider a letter before action or county court claim instead.
Do you present winding-up petitions?
No. Debt Collection UK is an introducer only. Partners collect. We are not solicitors, not an FCA-authorised debt collector, and we do not present petitions. The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed.
What does the fee look like on a worked example?
If £10,000 is recovered on an accepted claim, the fee would be £1,500 (15%), leaving £8,500 to you. That is arithmetic on the fee line, not a recovery statistic. Recovery is not guaranteed.