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Served with an HMRC winding up or bankruptcy petition?

Clear, practical guidance for people facing urgent insolvency proceedings. A petition does not always mean bankruptcy or liquidation is inevitable.

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Before you panic: receiving a petition does not always mean the outcome is unavoidable. Depending on the facts, it may be possible to defend, adjourn, settle, restrain advertisement or oppose the petition.
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Fast overview

What kind of petition have you received?

HMRC petitions are serious court proceedings. The correct response depends on whether the petition is against you personally or against a company.

C

HMRC winding up petition

A court application seeking to place a company into compulsory liquidation, often linked to VAT, PAYE, corporation tax or penalties.

P

HMRC bankruptcy petition

A court application seeking to make an individual bankrupt because of unpaid or disputed tax liabilities.

S

Statutory demand

A formal demand that may precede a bankruptcy or winding up petition. It should not be ignored.

Urgent action point
If a winding up petition is advertised, company banking and trading may be affected quickly.
First steps

Practical urgent tips

These are simple, immediate steps to help you regain control and avoid making the situation worse.

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Do not ignore the petition It is a formal court process, not just a warning letter.
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Check the hearing date immediately The closer the hearing, the more urgent the response.
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Gather all documents Keep HMRC correspondence, tax records, payment evidence and the petition.
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Act before advertisement if possible This can be critical for companies facing a winding up petition.
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Speak to a solicitor promptly Urgent help is available 9am – 9pm.
Risks of delay

Waiting can make the position much worse.

Petitions can escalate quickly. Early advice may preserve options that become harder later.

  • Bankruptcy order against an individual
  • Company wound up by the court
  • Company bank accounts frozen or restricted
  • Reputational and trading damage
  • Loss of control over assets or company affairs
  • Additional costs and creditor pressure
Defending petitions

Help may still be available.

Depending on the circumstances, a solicitor may be able to assist with one or more urgent options.

D

Dispute the debt

If the debt is genuinely disputed on substantial grounds, this may affect whether the petition should proceed.

A

Adjourn or oppose

There may be grounds to seek an adjournment, oppose the petition or present evidence at court.

R

Restrain advertisement

For companies, urgent action may be needed before a winding up petition is advertised.

Common questions

Quick answers for urgent situations

Can an HMRC winding up petition be stopped?

In some cases, yes. Options may include settlement, adjournment, dispute of the debt, procedural challenge or an application to restrain advertisement.

Can an HMRC bankruptcy petition be defended?

It may be possible depending on the facts, including whether the debt is disputed, whether procedure has been followed and what evidence is available.

What should I do first?

Check the hearing date, gather all documents and seek urgent independent legal advice. Do not wait until the day of the hearing.

Is this site operated by HMRC?

No. This is an independent legal information resource and is not affiliated with HMRC, GOV.UK or any government department.

Need urgent independent legal advice?

If you have been served with a bankruptcy petition, winding up petition or statutory demand, help is available between 9am and 9pm.

🚨 Contact a Solicitor 9am–9pm