A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
A company that owes me money has gone into liquidation - what can I do?
The honest starting point: unsecured creditors of liquidated companies often recover little - but the steps below cost almost nothing, occasionally recover a lot, and protect your own business from the knock-on.
Claim properly
Submit a proof of debt to the liquidator with your evidence - invoices, contracts, statements; it costs nothing, and distributions only reach creditors who claimed.
Read the liquidator's reports - they state realistically whether a dividend is expected - and note any creditor meetings or decision procedures where you can vote.
Check your escapes
Retention of title - if your terms include it and your goods are identifiable, they may be recoverable rather than lost.
Personal guarantees - if a director guaranteed the account, the company's failure doesn't end the debt.
VAT bad debt relief and a corporation tax deduction soften the write-off - claim both.
If something looks wrong
Liquidators investigate pre-insolvency conduct - if you saw assets moved, selective payments, or a suspicious restart under a similar name, tell the liquidator; creditor intelligence genuinely drives recoveries.
Protect your own position
A significant bad debt is a cash flow event for you too - and if it's pushed your own company towards the edge, the earlier that conversation happens, the more options survive.
Call our licensed insolvency practitioners in Manchester on 0333 023 5090 - free, confidential, and directly with an ICAEW-licensed IP.
InsolvencySupport.co.uk is operated by Xeinadin Corporate Recovery Limited (company no. 11415156), 8th Floor, 100 Barbirolli Square, Manchester M2 3BD. Our insolvency practitioners are licensed and regulated by the ICAEW.
This page is intended for general information purposes only and does not constitute financial, legal, or professional advice. Always take advice from a licensed insolvency practitioner about your specific position.