What is a Winding Up Petition

A winding up petition (WUP) is a legal action taken by a creditor or creditors against a company that owes them money. This is usually, but not exclusively, initiated after previous debt recovery attempts, such as a Statutory Demand, have failed. An application can be made to the court to close or ‘wind up’ a company, also known as compulsory liquidation, if a creditor is owed GBP 750 or more, and it can be shown that the company cannot pay its debts.