Up to the point of the advertisement you have the option to pay the debt and ask the other side to withdraw the petition if you owe the money or if you do not owe the money or the petitioner owes you more than the debt in the petition you can set this out in a statement and both ask the petitioner to withdraw the petition and ask the petitioner to pay your costs

If the petition is advertised you have problems so if you have a Defence or the petitioner owes you more than the petition debt and the petitioner refuses to withdraw you can apply to the court to stop them advertising called a Restraining Injunction. Look at the time limits below. At the worst you only have 7 days from receiving the petition to get it withdrawn and get the court order. That is why you must contact me as soon as you get the petition. Any delay can be a disaster

If you fail to stop the advertisement and still intend to try and trade and you dispute the debt or the petitioner owes you more than the debt in the petition you can unfreeze your assets and let people trade with you by applying to the court for an order allowing you to do this called a Validation order. If you have not contacted me before the advertisement then you must do so immediately the Petition has been advertised

If the petition has not been withdrawn earlier,by this time in the process you will have contacted me and either without the advertisement having been made or with the benefit of a Validation Order you have the first court hearing and the court will tell both you and the Petitioner how the court wants the case to be conducted and will set out time limits for both you and the petitioner to exchange further evidence and will fix a court hearing when your Defence can be tested

At the final hearing with our help, you win ,the petition will be dismissed and the court will say the petition has been an abuse of process and you get your costs paid

Below is some technical stuff and references to the Rules

The quicker you contact me the least grief you will suffer

Advertisement in the London Gazette

1. It cannot be advertised within 7 days of service of the petition on the company.
2. It must be advertised at least 7 days before the hearing the provision is 4.11.

Withdrawal of the winding up petition by the petitioner

This allows the petitioner to withdraw Usually after the debt has been paid or if it is obvious that there is a defence to the debt that forms the basis of the petition Conditions are:
1. The petition has NOT been advertised
2. No notices in support have been received by the petitioner
3. No notices in opposition have been received by the petitioner
4. The company against which the petition has been taken out consents

The Mechanism to get it withdrawn

The petitioner lodges with the court a Form 4.8
The provision is 4.15

Opposition by the Company

1 it must file an affidavit in opposition with the court at least 7 days before the hearing of the petition
2 it must serve a copy at the same time on the petitioner.The provision is 4.18
If the petitioner withdraws anybody else can apply to have themselves substituted if they would have a right to present a petition. The provision is 4.19

The company bank account will be frozen

Other creditors will see the advert and become a supporting creditor and have the right even if the petitioner decides to settle the debt.

Once the Bank knows about the petition any money it gives you can be reclaimed by the creditors ,that is why it freezes your account and the only way to unfreeze it is to obtain a Validation Order