A wind-up application has been filed
A creditor usually applies to wind up a company after it hasn't paid a statutory demand within 21 days. A creditor can also apply with other evidence that the company is insolvent. The court can order the company to be wound up and a liquidator appointed. Don't ignore it. Call the free Small Business Debt Helpline (1800 413 828) the same day, and speak to a registered liquidator.
Three things to do right now
- 1
Get a registered liquidator on the phone today.
Verify them through the ASIC register first. Most will take a free initial call. The conversation is about whether voluntary administration or another step before the hearing is sensible.
- 2
Call the Small Business Debt Helpline on 1800 413 828.
Free, specialist. Useful for working out the personal exposure and the lodgement housekeeping that protects you regardless of the company outcome.
- 3
Lodge everything still outstanding.
BAS (and, for super on wages paid up to 30 June 2026, super guarantee statements) — even with $0 paid. If PAYG withholding or GST isn't reported within 3 months of its due date, or that older super guarantee charge isn't reported by its due date, the ATO says the director penalty can only be cleared by paying the company's debt in full.
Key facts (checked October 2026)
- The court can order winding-up
- If the creditor shows the company is insolvent, usually because it didn't comply with a statutory demand, the court can order the company to be wound up and appoint a registered liquidator.
- Directors retain personal exposure
- Insolvent trading, unpaid super, unremitted PAYG withholding, and any personal guarantees remain in play. Liquidation of the company does not erase any of these by itself.
- Active engagement still helps
- If the company goes into voluntary administration before the hearing, the court must adjourn the hearing if it is satisfied that keeping the company in administration is better for creditors than winding it up. Whether that is the right move depends on the company's financial position and is a registered-practitioner conversation.
Who to call
Free or low-cost. Independent of creditors. Checked October 2026.
ASIC — Find a Registered Liquidator
The official ASIC search for registered liquidators and small business restructuring practitioners. Verify any practitioner you're considering, before paying any fee.
Verify and engage a registered practitioner.
Small Business Debt Helpline
Free, confidential, specialist financial counselling for sole traders and small business owners — tax debt, BAS, supplier pressure, insolvency options.
Free specialist financial counselling.
Australian Small Business and Family Enterprise Ombudsman
Federal statutory ombudsman for small business. Free assistance with disputes against other businesses or government, plus a Tax Concierge for ATO matters.
If the underlying debt is in genuine dispute. If the application relies on an unpaid statutory demand, the court may not let you dispute the debt at this stage, so get legal advice quickly.
Lifeline Australia
24/7 crisis support and suicide prevention. Phone, text, or chat. Free, confidential.
If the pressure is overwhelming. 24/7.
We do not refer to commercial debt-relief operators.
Every service we point you to is free or low-cost, government-funded or not-for-profit, and independent of creditors. If a paid operator is offering to negotiate your ATO debt or run a Part IX agreement for a fee, talk to the Small Business Debt Helpline first — 1800 413 828, free.
Prefer to talk to someone?
Mental health support is free, confidential, and one tap away.
Frequently asked questions
- What happens if the court orders winding-up?
- A registered liquidator is appointed and takes control of the company's assets, books, and bank accounts. The directors lose decision-making power over the company. The liquidator investigates the affairs of the company and pays creditors from realised assets in the order set by the Corporations Act.
- Can I appoint a voluntary administrator before the hearing?
- Yes, in many cases, unless the court has already appointed a provisional liquidator. If the company goes into voluntary administration before the hearing, the court must adjourn the hearing if it is satisfied that keeping the company in administration is better for creditors than winding it up. Whether it is the right move depends on the company's underlying position and whether Small Business Restructuring is also on the table. This is a registered-practitioner conversation, not a DIY decision.
- Does winding-up extinguish my personal director liabilities?
- No. Personal liabilities under Director Penalty Notices, personal guarantees, and insolvent-trading findings can persist after a company is wound up. Some are dischargeable through personal insolvency procedures via AFSA, but that is a separate process and is best discussed with a financial counsellor.
Sources
TEKVA provides information, not financial counselling or legal advice. Use this page as a starting point, then talk to a free specialist. The Small Business Debt Helpline is 1800 413 828.
This can get clearer from here.