Wind up a company that owes you money

Force the winding up of a company that owes you money and recover what you can.

When a company owes you money and cannot or will not pay, a winding up application is often the most effective tool available, particularly after a statutory demand has been served and left unanswered. The process is procedurally demanding: the application must be properly filed, served on the company and all known creditors, advertised in the prescribed manner, and supported by the correct evidence. We manage every step of the process, from issuing the statutory demand through to the winding up hearing and the appointment of a liquidator, ensuring procedural requirements are met and your position as petitioning creditor is properly protected.

What is a creditor-initiated winding up and how does it work?

A creditor-initiated winding up is a court-ordered process under the Corporations Act 2001 (Cth) by which a company is placed into liquidation at the request of a creditor, typically after the company has failed to comply with a statutory demand. Once a winding up order is made, a liquidator is appointed to collect and realise the company’s assets, investigate the conduct of its directors, and distribute any proceeds to creditors in the order of priority prescribed by the Act. For creditors, the process transforms an unenforceable debt into participation in a formal recovery mechanism with the coercive power of the court behind it.

What is the minimum debt amount to issue a statutory demand?

A statutory demand can be issued for a debt of at least $4,000 under the Corporations Act 2001 (Cth). The debt must be due and payable at the time of service. If the amount is disputed, the company can apply to have the demand set aside, which is why statutory demands should only be used for undisputed debts.

Can the company challenge the winding up application?

Yes. The company can oppose the winding up application by appearing at the hearing and arguing, for example, that it is able to pay its debts, that the demand was defective, or that there is a genuine dispute about the debt. It can also apply to have the statutory demand set aside before the application is even filed, which would remove the presumption of insolvency. These challenges are why the procedural requirements of the demand and the application must be precisely observed.

How long does a winding up application take?

From serving the statutory demand to obtaining a winding up order typically takes 6 to 12 weeks in straightforward matters: approximately 21 days for the demand period, plus several weeks from filing to the hearing date depending on court availability. If the company opposes the application or applies to set aside the demand, the process can take significantly longer.

What happens after a winding up order is made?

Once a winding up order is made, a liquidator is appointed to take control of the company’s affairs. The liquidator collects and realises the company’s assets, investigates the directors’ conduct, pursues any available voidable transaction claims, and distributes the net proceeds to creditors in the statutory order of priority. As a creditor, you lodge a proof of debt to participate in any distribution. The liquidator’s reports will keep you informed of progress throughout the process.

Cut through enforcement failure.

Investigate what happened.

Participate in the recovery.

Find out whether winding up is the right step for your situation.

Not every unpaid debt warrants a winding up application. The costs and likely recovery need to make commercial sense. We can assess the position quickly and tell you whether proceeding is likely to be worthwhile.

A technical defect in the application costs you time, money, and your position.

You are owed money by a company that has not paid and appears to be unable to do so. Ordinary enforcement methods have been ineffective or are unavailable. You need a mechanism that goes beyond enforcement and actually winds up the company’s affairs, with a court-appointed liquidator to realise whatever assets remain.

We will advise on whether the company's debt qualifies and whether proceeding is likely to be cost-effective.
We will prepare and serve a statutory demand as the first step in the process.
We will file and serve the winding up application and manage the court hearing process.
We will advise on your rights as petitioning creditor and ensure you are properly protected throughout.
We will lodge your proof of debt and advise on your recovery position once a liquidator is appointed.

The company owes you money and you have exhausted every other option.

You extended credit to a company that has since ceased responding to invoices, failed to attend mediation, and left a judgment unsatisfied. You have heard that other creditors are in the same position. The company still appears to have some assets, but they are beyond ordinary enforcement reach. A winding up application would put a liquidator in charge, provide a formal process for realising those assets, and give you a mechanism for recovering at least part of what you are owed.

What's included in your creditor winding up service

Eligibility and cost-effectiveness assessment.
Statutory demand preparation and service.
Winding up application filing and court management.
Petitioning creditor rights advice.
Proof of debt and liquidator liaison.

What happens when the process goes wrong.

Winding up applications that are technically defective are routinely dismissed by the court, and each dismissal gives the company another opportunity to deal with its assets in ways that prejudice creditors. A statutory demand that does not comply with the Act can be set aside, invalidating the entire foundation for the application. An application not served correctly or not advertised in the required manner may be struck out at the hearing. These procedural failures are not recoverable once they occur, and they are costly because each failed application means starting again and spending further money on a process that has already been delayed.

Here is how we get the winding up order you need.

We assess the position before committing to the process: whether the debt qualifies, whether the company appears to have assets worth pursuing, and whether the likely recovery justifies the cost. If proceeding is warranted, we prepare the statutory demand correctly and serve it in the required manner. When the 21-day period expires without compliance, we file the application with the supporting affidavit, attend to all required service and advertising, and manage the matter through to the hearing. At the hearing, we appear and seek the winding up order. Following the order, we monitor the liquidator’s appointment and lodge your proof of debt to ensure you are in the creditor pool.

How we get you to the winding up order.

From demand to liquidator appointment.

Assess and serve the demand.

We advise on whether proceeding is likely to be worthwhile, prepare and serve the statutory demand for the undisputed debt, and monitor the company's response.

File the winding up application.

If the demand is not complied with within 21 days, we file the application in the correct court, serve all required parties, attend to advertising, and prepare the supporting evidence.

Attend the hearing and lodge your debt.

We appear at the hearing, obtain the winding up order, monitor the appointment of the liquidator, and lodge your proof of debt to ensure you are positioned for any creditor distribution.

Experienced creditor-side insolvency lawyers who know the process inside out.

We have seen how demoralising it is to hold a judgment and still have no effective means of recovering the money owed to you. Our lawyers have managed creditor winding up applications from the initial statutory demand through to winding up orders and creditor participation in the subsequent liquidation. We know where the procedural requirements are demanding, what the court expects at the hearing, and how to ensure your position as petitioning creditor is properly protected throughout the process.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

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