Legal issues
The first question is which insolvency process applies: administration, compulsory liquidation, voluntary liquidation, a company voluntary arrangement or another restructuring procedure. Each can affect litigation and enforcement differently.
In administration, paragraph 43 of Schedule B1 restricts enforcement and other legal process without consent or permission. In liquidation, the creditor's position depends on whether the claim is secured, preferential or unsecured and whether any proprietary right, retention-of-title claim, guarantee or other separate source of recovery exists.
A personal guarantee is legally separate from the company's insolvency, but its wording, trigger, cap, security and any variation of the underlying debt must still be checked before pursuing the guarantor.
Evidence that matters
Keep the contract and terms, invoices, statement of account, judgment if any, insolvency notices, administrator or liquidator correspondence, proof-of-debt documentation, security documents, retention-of-title provisions, guarantees and evidence of goods, assets or payments relevant to the claim.
Reasonable lines of enquiry
Confirm the company's exact insolvency status and office-holder through Companies House and the insolvency correspondence. Identify whether the creditor holds security, title to goods, a personal guarantee or another claim outside the ordinary unsecured pool.
Check whether proceedings or enforcement were already underway when the insolvency event occurred, whether the administration moratorium requires consent or court permission, and whether the likely dividend justifies further cost.
If the company is in liquidation, contact the office-holder promptly and ensure the creditor is correctly recorded. GOV.UK states that creditors owed more than £1,000 will need to submit a proof-of-debt form when registering in a bankruptcy or liquidation; for £1,000 or less, the creditor should provide contact details and the amount owed.
What happens next
In administration, the creditor normally contacts the administrator, submits details of the claim and considers whether any proposed distribution, sale, restructuring or request for consent affects its position. Where enforcement or another legal step is restricted, an application for permission may sometimes be considered.
In liquidation, the creditor registers with the official receiver or insolvency practitioner and provides the debt information and supporting documents required. The office-holder reports to creditors and, if assets permit, distributions are made according to the statutory priority regime. The process can take substantial time and may produce only a partial dividend or no payment.
Immediate steps
Stop automatic escalation until the insolvency status is verified. Identify the office-holder, preserve any security or title documents, calculate the current debt, register the claim promptly and check whether another recovery route — such as a guarantee — exists outside the insolvent company itself.
What should you send us?
Send the contract, invoices, account statement, judgment or enforcement papers, insolvency notice, Companies House details, office-holder correspondence, proof-of-debt papers, security or retention-of-title terms, personal guarantees and a short chronology of recovery steps already taken.