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Insolvency Q&A part five: creditors

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Welcome to the fifth and final part of our five part insolvency blog covering the most frequently asked questions around insolvency and liquidation.

Part five will cover the most frequently asked insolvency questions by creditors.

Part one covered general insolvency.

Part two covered questions by business owners and company directors.

Part three covered individuals and sole traders.

Part four covered employees.

For further advice about any of the topics covered in our insolvency blogs or regarding a specific scenario, please contact our insolvency & recovery specialists on 0330 024 0888 or All initial discussions are confidential, free of charge and without obligation.

  1. I think a company that owes me money is insolvent. How can I check?

If a company enters a formal insolvency process, details of the insolvency will be recorded at Companies House. You can search the Companies House website here.

  1. I think a person who owes me money is insolvent. How can I check?

If an individual is currently an undischarged bankrupt or is subject to an individual voluntary arrangement (IVA), details of the proceedings will be recorded on the individual insolvency register. You can search the individual insolvency register here.

  1. I’m a creditor of an insolvent company/individual. How can I recover my money?

In order to receive repayment of your debt you’ll need to provide written details of your claim to the office-holder in the proceedings.

Whenever a company or individual enters a formal insolvency process you should receive notification from the proposed or appointed office-holder. It’s common for the office-holder to provide you with the relevant form to use, but you should request a claim form if one isn’t received.

You’ll only receive repayment of part or all of your debt if there are sufficient funds available, after the payment of the costs of the proceedings.

Once there are sufficient funds available for paying creditors there’s an order of priority for how liabilities are to be paid. One of our insolvency specialists can explain the order of priority to you.

If you obtained a personal guarantee from a director or third party then you may be able to recover your debt outside of the insolvency proceedings by pursuing the guarantor. If you do recover your debt, you have a duty to advise the office-holder that you’ve recovered some or all of your debt.

  1. I’m a creditor of a company in members’ voluntary liquidation. How can I recover my money?

If a company that owes you money has entered a members’ voluntary liquidation, then your debt should be repaid in full, along with statutory interest, within a period of 12 months.

You should notify the liquidator of your claim by submitting written details of your claim against the company.

  1. When will I find out whether my debt will be repaid?

An office-holder is required to issue a statutory progress report on the anniversary of their appointment. Contained in the report should be details about the dividend prospects.

In addition, prior to paying a dividend to creditors the office-holder is duty-bound to circulate a notice of his intention to declare a dividend. This will be sent to all creditors who have not yet submitted details of their claim in the proceedings.

Make sure you advise the office-holder if you change address so that you receive notification and/or payment of dividends.

  1. Can I claim retention of title (ROT) over goods supplied?

If you have a valid ROT clause and the goods supplied still remain at the company’s premises then you may be able to claim ROT.

You should notify the office-holder that you are claiming ROT at the earliest opportunity, who will adjudicate on your claim.

  1. What is a proxy form?

A proxy is defined in the Insolvency Rules 2016:

“A ‘proxy’ is a document made by a creditor, member or contributory which directs or authorises another person (‘the proxy holder’) to act as the representative of the creditor, member or contributory at a meeting or meetings by speaking, voting, abstaining or proposing resolutions.”

However, it should be noted that a completed proxy form must be submitted by all limited company creditors wishing to be represented at a meeting (even if their own employees are attending) and by unincorporated businesses and individuals who are unable to be present in person, but who wish to be represented at the meeting.

A proxy vote will be invalid unless it’s accompanied by a proof of debt and is submitted to the chair before the meeting or by the proxy deadline.

A proxy vote can be given to the chair of the meeting, who will either vote as per the instructions on the proxy or, where no instructions are given, at their discretion.

If you require assistance in completing a proxy form, please contact one of our insolvency specialists.

Need help?

To find out more, call 0330 024 0888 or email

Lee Green


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Larking Gowen

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