HomeFWJ takeawayTakeawayWinding up petitionsGeneral winding up petition informationCosts in winding up petition proceedings

The issue of legal costs in a winding up petition very much depends on the outcome of the process - such as if the petition was disputed, dismissed by consent or the company wound up. Our expert team has dealt with thousands of petitions since 2002. We can advise you on the subject of legal costs and much more.

The court has a discretion to make whatever costs order it feels fit in any particular case, including in winding up proceedings.

However, the normal costs orders the court would make in winding up petition cases are as follows

  • If a winding up order is made, then the court would normally order that the petitioning creditor is awarded their costs out of any assets of the company which the liquidator subsequently collects. This is known as the “usual compulsory order”;
  • If a petition is dismissed because the creditor has failed to comply with the various procedural requirements set out in the Insolvency Rules, then they petitioning creditor is unlikely to recover its costs;
  • If a petition is dismissed because a debtor has paid the debt due under the petition, then as long as the petition has been advertised, the petitioner is usually able to recover its costs. In practice, the petitioning creditor will normally insist that its costs are paid by the debtor company before agreeing to dismiss or withdraw the winding up petition;
  • If the winding up petition fails, then the petitioning creditor will normally be ordered to pay the company’s costs.

If the parties cannot agree costs among themselves, then they can go to detailed assessment. The court do not generally have time to deal with costs as part of the winding up petition list, so issues in relation to costs will be dealt with at separate hearings.


Our expert team of winding up petition solicitors at Francis Wilks & Jones are here to help you with any type of winding up petition enquiry or question. Contact one of our team of expert winding up petition lawyers now for your confidential winding up petition consultation. Whatever your winding up petition requirements, let us help you.

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