Key Takeaways
- If your company receives a winding up order, you have legal rights to set aside or revoke it by urgently applying to court.
- Failing to challenge a winding up order can lead to irreversible compulsory liquidation, loss of company assets, and director disqualification risks.
- Section 142 of the Insolvency Act 1986 empowers courts to rescind a winding up order in certain situations—such as debt repayment, procedural errors, or new crucial evidence.
- The deadline to apply is strictly seven days from the winding up order’s date—delays make success far less likely.
- Strong evidence and clear legal reasons give your application the best chance of success.
- Creditors or appointed liquidators can oppose your application, making expert legal representation essential.
- Our solicitors specialise in setting aside winding up orders and provide clear guidance on evidence, process, and timescales.
- Successfully revoking an order restores the business; failure results in liquidation and associated personal and professional consequences.
- We are rated Excellent on Trustpilot with over 130 five-star reviews and a 4.9/5 rating from satisfied clients.
- For urgent, actionable advice on winding up orders, contact us directly for a free consultation.
For confidential advice from our expert winding up order lawyers, call 0207 459 4037 or request a free, same-day strategy call using our online form.
How Can You Set Aside or Revoke a Winding Up Order in the UK?
Discovering that a winding up order has been made against your company is a critical moment for any director. Immediate action is essential: the court process often results in bank accounts being frozen, assets transferred to a liquidator, and employees made redundant within days.
If your business has been served with a winding up order in England or Wales, it is possible to halt or reverse the process in certain circumstances. Our guide explains the legal test for rescinding or revoking a winding up order, the urgent seven-day deadline, and the exact steps for mounting a successful application. We explain the practical requirements of Section 142 Insolvency Act 1986, the documentary evidence you’ll need, and how a timely, well-prepared response can protect your company from insolvency and reputational damage.
Our litigation team specialises in urgent winding up order applications. For clear, expert guidance without delay, call 0207 459 4037 or book a free consultation now.
Can a Winding Up Order Be Set Aside or Revoked in the UK?
A winding up order can be set aside or revoked in England and Wales if legal grounds exist. Typical scenarios involve payment of the debt after the order, significant procedural flaws, new evidence, or orders made in error.
Applications are tightly controlled and granted only when persuasive legal reasons are presented. The process requires fast, detailed preparation.
What Is a Winding Up Order and What Happens If My Company Receives One?
A winding up order is a High Court order that places your company into compulsory liquidation—effectively forcing it to cease trading and placing all assets under the control of a court-appointed liquidator. This order is usually made following a petition by HMRC or a creditor to recover unpaid debts over £750.
Consequences include:
- Immediate loss of director control
- Bank accounts and credit lines frozen
- All legal actions stayed
- All assets vested in a liquidator
- Compulsory employee redundancy
Acting rapidly is crucial—without swift application, liquidation is rarely reversible.
You may also find our guide on how to stop a winding up petition helpful if you’re still at the petition stage.
What Are the Legal Grounds for Setting Aside or Revoking a Winding Up Order?
The court will only rescind or set aside a winding up order where strong legal grounds can be demonstrated. Common justification includes:
- The debt that triggered the order has been paid in full (including interest and costs), typically after the winding up order.
- The order resulted from a genuine procedural error.
- New and decisive evidence shows the debt was not genuinely due or a third-party error caused non-payment.
- The petitioning creditor consents to the revocation.
- Exceptional fairness or public interest reasons—such as transactions made in error or clear injustice.
The court has discretion and does not accept every case. The applicant must show not just technical compliance but also that justice compels the order’s rescission.
What Is Section 142 of the Insolvency Act 1986?
Section 142 of the Insolvency Act 1986 gives the court the legal authority to “rescind any winding up order on such terms as it thinks fit” upon application by “any person aggrieved”.
A clear explanation of the legal basis for rescission, and why it serves the interests of justice, must be provided.
How Long Do I Have to Apply to Revoke a Winding Up Order?
The application must be made within 7 days from the date of the winding up order. This tight timeframe is prescribed by Rule 7.47 of the Insolvency Rules 2016.
Any delay beyond this will make reversal significantly more difficult, as more assets may be realised and control is increasingly lost to the liquidator.
Why Is the 7-Day Deadline So Important?
Courts in England and Wales enforce the 7-day window strictly. Once the deadline expires, the company is at real risk of permanent dissolution, job loss, and asset realisation.
Contact our litigation team urgently if your window for application is closing. Prompt legal advice can make the difference between recovery and liquidation.
How to Apply to Set Aside or Appeal a Winding Up Order: Step-by-Step Guide
- Take Immediate Action: Ensure your application is filed within 7 days of the winding up order being made.
- Draft a Detailed Application: Submit the application to the same court that made the original order, stating your legal grounds for rescission.
- Prepare Comprehensive Evidence: This may include payment confirmations, correspondence, witness statements, and statements from directors or accountants.
- Serve Formal Notice: Deliver copies of the application to the petitioning creditor(s), the appointed liquidator or official receiver, and Companies House.
- Attend the Court Hearing: Be ready to present your case with clear legal arguments and robust evidence.
If you are appealing a winding up order (rather than seeking rescission), you must act even more urgently—timeframes for appeals are typically 7 days, with grounds limited to procedural or legal errors.
What Evidence and Documents Will I Need?
- Proof of debt repayment (bank statements, receipts)
- Witness statements from directors, accountants, or relevant third parties
- Copies of all key correspondence and the original petition/order
- Chronology outlining the lead-up and response to the order
- Evidence of creditor interactions, such as agreement to rescind
Providing robust, fact-based evidence is essential. Well-prepared bundles show the court your case has merit and is not simply a stalling tactic.
Who Can File the Application?
Any “person aggrieved” may apply. In practical terms, this will usually be the company’s directors, major shareholders, or, on occasion, a creditor or affected party.
For a cost breakdown on winding up petitions, see our guide on winding up petition costs in the UK.
Can Creditors or Liquidators Oppose an Application to Revoke a Winding Up Order?
Yes. Creditors (especially the petitioner) and the official receiver or appointed liquidator almost always have the right to object. Their main arguments may include:
- The debt remains unpaid or only partially settled
- Other creditors will be unfairly prejudiced
- Misconduct or failure to provide accurate information
- The business is hopelessly insolvent
Creditors’ opposition can be influential, but judges weigh all factors—timing, conduct, debt settlement, and the fairness of maintaining the order.
What Happens After I Apply to Revoke a Winding Up Order?
The court will schedule a hearing, usually within a few days or a fortnight. Both sides are expected to present their evidence and arguments. Liquidation will usually continue in the interim, so swift engagement and legal readiness are imperative.
How Does the Court Decide These Applications?
Judges review all the available evidence, check correct legal processes were followed, and look for any substantial injustice if the order remains. Factors the court will prioritise include:
- How quickly you submitted your application after the order’s date
- Whether you have paid the original debt in full (plus costs)
- The impact on, and fairness to, other creditors and employees
- The company’s underlying financial health and past conduct
The stronger your evidence and justification, the higher your chance of restoring the business.
What If My Application Is Refused?
If rescission or revocation is rejected, compulsory liquidation continues. The liquidator will realise assets, make redundancies, and dissolve the company. Limited rights of appeal may exist but are rarely successful if evidence or timing is weak.
If you require urgent advice or rapid document review, contact our team for a confidential consultation.
What Laws and Deadlines Apply to Setting Aside a Winding Up Order?
Statutory Framework: Insolvency Act 1986 and Rules
- Section 142 Insolvency Act 1986: Empowers courts to rescind winding up orders in appropriate cases.
- Insolvency Rules 2016, Rule 7.47: Governs procedures, including a strict 7-day deadline from the date of the order.
Both must be followed scrupulously. Missing the timescale, or incomplete evidence, can irreversibly prejudice your company’s chances.
Strict Time Limits and the Risks of Delay
- The rescission or revocation application must be filed within 7 days.
- Applications after this window may only be accepted in highly exceptional circumstances (e.g. fault outside your control).
- Delay typically allows assets to be gathered, contracts cancelled, and company dissolution to proceed, reducing your chances of recovery.
Failing to act within the 7-day period is the most common mistake made by directors in England and Wales. Immediate action with legal guidance is vital.
What Are the Risks, Costs, and Consequences of Challenging a Winding Up Order?
Applying to set aside or revoke a winding up order is not without risk. Key points to consider include:
- Liability for court fees, legal costs, and possibly the creditor’s costs if unsuccessful
- Liquidation often continues during your application; directors retain duties but with limited powers
- Business reputation and credit rating can suffer, especially if the case is unsuccessful
- Employee claims, customer disruption, or supply chain loss where the order is not overturned
Does the Liquidation Process Stop When I Apply?
No. Unless the court issues a stay, liquidation continues. This can mean ongoing realisation of assets, freezing of accounts, and staff redundancies during the process.
What If My Application Succeeds or Fails?
If successful, the winding up order is revoked and your company resumes trading. If the application is refused, compulsory liquidation continues—often with rapid asset sales and dissolution.
We work closely with directors, accountants, and specialist insolvency practitioners to manage risk at every stage.
Our Winning Approach to Setting Aside Winding Up Orders
Our solicitors take a strategic, results-driven approach to winding up order challenges:
- Urgent review of deadlines and fast action to meet court requirements
- Full evidence collation in collaboration with directors, accountants, and finance teams
- Bespoke drafting of legal applications tailored to company circumstances
- Addressing anticipated creditor or liquidator objections pre-emptively
- Providing transparent costs, fixed-fees, and clear communication throughout
Clients consistently benefit from our ability to marshal prompt payment evidence, correct process defects, and restore company goodwill, with minimal operational disruption.
If you would like your situation reviewed by our specialist winding up order lawyers, arrange a confidential strategy call or request a same-day consultation.
Frequently Asked Questions
Who can apply to have a winding up order rescinded in England & Wales?
Any “person aggrieved,” usually directors or shareholders, can apply under section 142 Insolvency Act 1986, provided clear legal grounds exist.
Can I negotiate with creditors after a winding up order is made?
Yes, but time is critical. Negotiation supports, but does not replace, the formal court process. If creditors consent, courts are more likely to grant rescission—but delay reduces that chance.
What’s the difference between setting aside and appealing a winding up order?
Setting aside (or rescinding) is a direct application to the original court—typically on grounds of new evidence, payment, or procedural error. An appeal is a formal legal challenge on points of law to a higher court, and is usually more complex and time sensitive.
Will my company’s bank account be unfrozen if the order is revoked?
Generally, yes. If the order is rescinded and the company is restored, you must coordinate with the liquidator and your bank to regain account access.
Do I have to attend court personally for the rescission hearing?
It is highly advisable. While a solicitor can advocate for you, judges expect company officers to answer direct questions, especially where credibility is at issue.
How does an official receiver respond when an application is filed?
The official receiver will typically submit a short report or attend the hearing—to either support, oppose, or comment on your application.
Can I seek an extension if I miss the 7-day deadline?
Extensions are only granted in highly exceptional cases, such as critical procedural error out of your control. Courts enforce this rule strictly.
Is it easier to revoke a winding up order if the debt is paid in full?
Prompt payment of the original debt (including costs and interest) is a strong factor in your favour, but speedy, well-documented application—plus creditor and court acceptance—are still required.
What are the prospects of success if the winding up was based on a disputed debt?
If you can show clear, credible evidence that the debt was genuinely disputed on legal grounds (not just unpaid), there are prospects for rescission. Early legal intervention is essential.
Will challenging a winding up order impact my company’s credit rating?
Yes. The fact of the winding up order is usually recorded at Companies House and in the public domain, with negative impact on creditworthiness. A successful application may help repair this, but cannot erase all consequences.
Speak to a Winding Up Order Solicitor Today
If your company in England or Wales has received a winding up order, strict legal deadlines and evidential standards apply. Knowing your rights, deadlines, and potential pitfalls is the first step to protecting your business and your own position as a director or shareholder. Our experienced solicitors have a proven record in setting aside winding up orders, managing complex creditor negotiations, and safeguarding companies’ operational and reputational interests.
Expert legal action—delivered rapidly—is the most effective way to save your business and reduce personal risk. For personalised, confidential advice book a free strategy call, or speak to our expert winding up lawyers today on 0207 459 4037.
