What Should I Do If a Company That Owes Me Money Enters Liquidation?

Company Dissolution and Liquidation

Prepared by: Constantinople

A company's entry into liquidation does not mean that its debts automatically disappear. During liquidation, the company's existence and representation structure continue for specified purposes. As a creditor, you should first check the current registry record, liquidator and published calls to creditors. A liquidation resolution and a bankruptcy order concern different processes; applications are distinguished accordingly.

Prepare the agreement giving rise to your claim, invoices, delivery or service documents, payment records and any judgment or enforcement file. A notification to the liquidator must clearly state the basis, amount and supporting evidence of the claim. Keep proof that the notification was sent and received. Merely saying you saw the notice or spoke to a former director by telephone may not reliably establish that your claim was recorded.

Rejection of the claim, litigation concerning it and insufficient company assets require consideration of different routes. The relationship between liquidation procedures and existing enforcement or litigation files is assessed separately. Shareholders are not automatically liable for every company debt. If the liquidator's or director's personal liability is alleged, its own legal conditions and the specific transaction must be examined; non-payment alone is not an adequate explanation.

Prepare the claim documents, current registry record and call to creditors together. Notification, existing enforcement and, where necessary, supplementary liquidation options are assessed separately.

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