{"id":180309,"date":"2023-04-05T04:55:47","date_gmt":"2023-04-05T03:55:47","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=180309"},"modified":"2025-07-02T00:38:27","modified_gmt":"2025-07-01T23:38:27","slug":"owes-my-business-money","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/owes-my-business-money\/","title":{"rendered":"An Insolvent Business Owes My Business Money. What Are My Options?"},"content":{"rendered":"\n

Does another business owe money to your business? Does the business refuse to pay, even after you issued a statutory demand letter<\/a>? In some cases, the other business, which the law refers to as your debtor, may be insolvent. Accordingly, you may have special rights against the insolvent company. This article will look at what options are available to you if an insolvent business owes your business money. <\/p>\n\n\n\n

Has Your Debtor Entered Insolvency Proceedings? <\/h2>\n\n\n\n

The first thing to determine is if your debtor is insolvent. If they are insolvent, special remedies are available to that company’s creditors. But, at the same time, there are specific measures you cannot take against an insolvent company, even if it owes you money. <\/p>\n\n\n\n

To determine if your debtor is insolvent, you can undertake a Companies House search<\/a> of the company. If a third party, such as another creditor or the company\u2019s directors, have obtained an insolvency petition, Companies House will typically indicate this. For smaller businesses, you should look for an entry that says either an administrator or liquidator has been appointed. <\/p>\n\n\n\n

What Happens If There Is a Notice?<\/h3>\n\n\n\n

If you see such a notice, you need to register as soon as possible with the court that you are a creditor of the company. If you do not register in time, you may be unable to recover your debt. <\/p>\n\n\n\n

What Happens If There Is No Notice?<\/h3>\n\n\n\n

If there is no notice on Companies House, that does not mean the company is not insolvent. It could be that no one else has initiated an insolvency procedure against the company. If this is the case, you may want to initiate the process by filing an application with the court. <\/p>\n\n\n\n

Initiating Insolvency Proceedings Against Your Debtor<\/h2>\n\n\n\n

The two common insolvency procedures for smaller companies are liquidation<\/a> and administration. You need to apply to the court to begin either process. However, provided you are owed a substantial sum, you may instruct an insolvency solicitor experienced in advising creditors. They can advise you on which process may maximise your chances of recovering your debt. <\/p>\n\n\n\n

In either case, you must convince the court that the company is properly insolvent. You can usually satisfy this by serving a statutory demand form or obtaining a court judgment against the company. Again, an insolvency lawyer skilled in creditor work can advise. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

\n
\n Need legal advice?\n
\n \n Call 0808 196 8584<\/a> for urgent assistance.\n
\n Otherwise, complete this form, and we will contact you within one business day.\n <\/span>\n <\/div>\n\n \n\n
\n