Compulsory liquidation
Compulsory liquidation is when a court informs a company that it is insolvent and must file for liquidation. A compulsory liquidation court order is the last stage of the process, the first is where a creditor issues what is known as a winding up petition against a company for unpaid debts. This is an application to the court to close or ‘wind up’ a company if it cannot pay its debts. There are different rules on winding up a company in Scotland.
In England and Wales to wind up a company the creditor must: "be owed £750 or more and be able to prove that the company cannot pay"
Specific forms must be completed and sent to the right court to apply to wind up a company. If successful: "the company assets are sold, any legal disputes are settled, the company collects money it’s owed (and) funds are paid to you and any other creditors'
This may lead to the creditor receiving all (including fees), some or none of the money owed, it is a major action against a company and there are other routes to recovering owed money, best might be to seek advise from debt specialist (or solicitor) to help recover debts.
Fees for a winding up petition in January 2025 were court fees at £332 and a petition deposit (to manage the ‘winding-up’) of £2,600.
For further information visit https://www.gov.uk/wind-up-a-company-that-owes-you-money and for Scotland visit different rules.
[edit] Related articles on Designing Buildings
- Business interruption cover under COVID-19.
- Campaign for cash retentions reform.
- Carillion.
- Cash flow statement.
- Contract claims.
- Fair payment practices.
- Insolvency Act 1986 - Use of Prohibited Names.
- Insolvency in the construction industry.
- ISG administration, October support update.
- ISG files for administration.
- Liens.
- Liquidation in the construction industry.
- New regulations on late payment.
- Profitability.
- Prompt payment.
- Remedies for late payment.
- Resolution planning.
- Scheme for construction contracts.
- Solvency.
- Support for ISG contractors, companies and employees.
- The Late Payment of Commercial Debts Regulations 2013.
Featured articles and news
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems as first project of the newly formed Labout government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Building Engineering Business Survey Q1 2025
Survey shows growth remains flat as skill shortages and volatile pricing persist.
Construction contract awards remain buoyant
Infrastructure up but residential struggles.
Home builders call for suspension of Building Safety Levy
HBF with over 100 home builders write to the Chancellor.
CIOB Apprentice of the Year 2024/2025
CIOB names James Monk a quantity surveyor from Cambridge as the winner.
Warm Homes Plan and existing energy bill support policies
Breaking down what existing policies are and what they do.
Treasury responds to sector submission on Warm Homes
Trade associations call on Government to make good on manifesto pledge for the upgrading of 5 million homes.
A tour through Robotic Installation Systems for Elevators, Innovation Labs, MetaCore and PORT tech.
A dynamic brand built for impact stitched into BSRIA’s building fabric.
BS 9991:2024 and the recently published CLC advisory note
Fire safety in the design, management and use of residential buildings. Code of practice.