Winding-up application filed: what to do before you pay anything
Get the papers before you touch the money
If a creditor has filed a winding-up application, start by getting a copy of the application and the hearing date. The Federal Court says winding-up applications are commenced by filing the originating process, and the first hearing details are tied to that filing. Do not rely on hearsay from the bank, the creditor, or a staff member. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/guide?utm_source=openai))
That matters because the court timetable drives every other decision. If you do not know the return date, you do not know how long you have to respond, negotiate, or put evidence together. Ask for the court, filing date, applicant name, and any documents served so you can work from the actual file, not a version that has been passed around the office. ([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))
Call the creditor’s lawyers today
Contact the creditor’s lawyers the same day you get the papers. Ask what amount they say is owing, whether costs or interest are claimed, and what they want before the hearing. Federal Court guidance makes clear that winding-up matters move through formal steps, so keep the conversation practical and document every answer. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/national-practice-areas/commercial/corporate-insolvency?utm_source=openai))
This is not the time for a long explanation about a tough month. Keep the call focused on whether the creditor will accept payment, part payment, or a settlement deed before the hearing. If their figures do not match your records, say so plainly and ask for the documents behind the claim. ([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
Build a solvency file, not a story
Pull together bank statements, aged payables, debtor reports, tax lodgments, payroll records, and any finance schedules. ASIC’s director guidance says to get professional advice early and not assume the position will fix itself. Your file should show what cash is actually available, what is due now, and what must be paid before the hearing. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
Use cleared funds, not hoped-for receipts. A promised progress payment is not cash until it lands, and a disputed invoice is not money you can spend today. If the numbers show the company may not be able to pay its debts as they fall due, that is the point to treat the matter as urgent and stop pretending time will solve it. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
Be careful with any payment after filing
The legal timing point needs care. The Corporations Act says dispositions made after the commencement of the winding up are generally void unless the court orders otherwise, and the legislation also allows the court to validate some dealings where an application has been filed but no order has yet been made. So the risk is real, but it is not a simple one-line rule. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
That is why you should not move money casually after a filing. If you are considering paying the creditor, settling the debt, or making a supplier payment that could be questioned later, get advice first and keep the paper trail tight. The safer approach is to know whether you are dealing with a filed application only, or an actual winding-up order, before any transfer goes out. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2024-09-24/2024-09-24/text/original/pdf/2?utm_source=openai))
Decide today whether to settle or fight
By the end of today, you should have the application, the hearing date, the creditor’s contact details, and a basic solvency pack. If the claim is real and you can settle before the hearing, that may be the cleanest way to narrow the problem. If the company can show solvency, get that evidence organised now, because delay makes the file harder to defend. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/guide?utm_source=openai))
CRP coordinates independent qualified professionals, not a law firm, and can help you work through legal intervention with the right documents in front of the right adviser. Call CRP today about legal intervention. This article is general information only and is not legal advice for your circumstances. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/national-practice-areas/commercial/corporate-insolvency?utm_source=openai))