Supplier just went into liquidation - Have I lost my money?

[Kozy]

Just received notification that one of my suppliers has gone into liquidation. I had a pending order with them of which £2200 had been paid up front by BACS.

Never had to deal with this before, I've been given forms to fill in regarding the debt and also something about voting on the liquidators renumeration? Is this something I should get involved with? By the sounds of it if none of the creditors turn up or vote by proxy then the liquidator could just charge 100% of the assests and leave nothing in the pot to compensate the creditors?

Either way, I'm assuming I've lost that money. Do people typically manage to claw back anything when this happens or is it really a case of 'how long is the piece of string?'.

[Thurbs]

You need to make contact with the liquidators and they can give you the heads up. It all depends on how much of a basket case the business is/was but would be amazed if it was > 5p/£1.

It sounds like you should look at this also:

https://en.wikipedia.org/wiki/Trading_while_insolv...

Bad luck and next time you could concider a credit check on the company to understand the risk of it happening again.

[dartissimus]

A bit late now, but paying upfront is best done with a credit card, not by bacs.

Also, is there any comeback/protection on upfront payments/deposits especially if insolvency can be proved to have been already there? aside from the criminal aspect.

[Alpinestars]

Sign up. The liquidator has to act in the best interests of all creditors. Depending on the assets vs liabilities position of the company, and whether there are secured creditors ranking ahead of your debt (unsecured), you might get a payout which is expressed as x pence in the £.

[Ean218]

dartissimus said:

A bit late now, but paying upfront is best done with a credit card, not by bacs.

Does that help if it is business to business? I thought it is then treated as a charge card, rather than a credit card, with different rules regarding refunds, or lack thereof.

[spikeyhead]

Every case I've ever looked at has been between 2 and 3p in the £ after the liquidator has taken their cut.

[Alpinestars]

spikeyhead said:

Every case I've ever looked at has been between 2 and 3p in the £ after the liquidator has taken their cut.

That's probably the case in many. Some have paid out well over 100p in the £!

[dartissimus]

Ean218 said:

dartissimus said:

A bit late now, but paying upfront is best done with a credit card, not by bacs.

Does that help if it is business to business? I thought it is then treated as a charge card, rather than a credit card, with different rules regarding refunds, or lack thereof.

Use a private card and put the bill through the business. No problem if it's a legitimate business purchase, no need if it's not.