A Limited Company has become insolvent, they owe us money AND they are serial offenders what can we do?
It is often assumed that you can do nothing when a limited company becomes insolvent and unfortunately all insolvency practitioners are not equal. Often there is a promise to look after you and settle your invoice behind the scenes, which is again often not fulfilled. This is to throw you off the scent of your money.
If the directors have traded whilst insolvent they may be personally liable for the company’s debts under provisions of wrongful and or fraudulent trading (Sections 213 and 214 of the Insolvency Act 1986).
If the directors have deliberately not paid you, as in the case of a long firm fraud, then there may also be criminal matters to consider under Section 993 of the Companies Act 2006 and Section 213 of the Insolvency Act 1986.
What can creditors do?
They can appoint their own insolvency practitioner.
They can establish a liquidation committee to supervise the liquidator.
Contact the other creditors; a schedule of these will be available from Companies House. Then, turn up at or call a meeting of creditors with your chosen Insolvency practitioner. If you require a reputable insolvency practitioner then please ask. We work alongside some Insolvency practitioners that we are able to recommend.