Frozen company account after a winding-up application: what to do next
Start with the legal trigger, not the banking error
When a company account suddenly stops paying wages or suppliers, the freeze often means the bank is worried about the effect of a winding-up application or order. Under the Corporations Act, dispositions after the court winding-up starts are generally void unless the court orders otherwise, and some bank payments are only protected before the day of the order. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
That means the first question is not whether the bank is being difficult. It is whether a winding-up application has merely been filed, or whether the court has already made an order. A filing and an order are not the same thing, and the answer changes what the bank can safely pay. Get the paper trail before you promise anyone money. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
Pin down the file details today
Ask the bank for the application number, the court, the filing date, the hearing date, the applicant, and the reason the account was restricted. Ask for copies of any letters, notices or internal risk notes. Federal Court guidance on winding-up applications and ASIC notice requirements shows that these matters are tracked formally, so you should be able to identify the file and the moving parts. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))
If you cannot get a clear answer from the branch, call the creditor's lawyer as well. Confirm the debt claimed, whether the application is based on an unsatisfied statutory demand, and whether any settlement offer is already on the table. Keep every answer in writing so the facts do not change by afternoon. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))
Source: Official guidance
Ask whether essential payments can be carved out
If the business still needs to pay wages, insurance, fuel or plant hire, ask whether a narrow court order can authorise those essential payments. Section 468 lets the court otherwise order a disposition that would otherwise be void, but that does not mean every request succeeds. The request needs specific payees, amounts and reasons. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
Do not ask for a blanket release of funds. A tighter request gives the court, the creditor and the bank something they can actually assess. Bring recent bank statements, the next week's payment schedule and evidence that the payments are for essential trading or preservation, not general breathing space. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
Use the creditor call to test settlement
At the same time, speak to the creditor about settlement. If the claim is real and the amount is manageable, a fast and documented deal may be better than waiting for the hearing. Ask what they need to withdraw the application, whether they will accept staged payment, and what must be signed. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))
Do not negotiate from memory. Confirm the amount, the due dates, any interest or costs claimed, and whether the creditor wants security or a deed. If the numbers do not match your records, say so plainly and ask for the documents that support the claim. That keeps the discussion practical and stops the talk drifting into guesswork. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))
Get advice with the right file in front of you
Today, assemble one file: the application, the bank's freeze notice, the creditor's correspondence, the latest statements, and a list of payments due over the next seven to fourteen days. That bundle helps a lawyer or insolvency adviser see whether the issue is a temporary hold, a settlement problem or a wider solvency problem. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))
CRP coordinates independent qualified professionals, not a law firm, and can help you work through the legal intervention pathway with the right documents in hand. Call CRP today about legal intervention. This article is general information only, not a promise about outcome, rights or timing, and it should not replace advice on your own facts. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1?trk=public_post_comment-text&utm_source=openai))