They’ve Gone Bust — Now What? And How to Avoid It Next Time
Ever opened an email only to find out your client’s gone into administration? Panic sets in, and your unpaid invoices flash before your eyes. Do you start wondering if you’ll ever see that money again or if you’ve just been caught in a financial trap? Before you get lost in worst-case scenarios, let’s take a step back and explore what this really means for you — and how you can safeguard your business going forward.
Can you help if my debtor is in administration?
It’s a question we hear often in the debt collection world. And while some agencies might promise they can recover what you’re owed, the honest truth is — they can’t. This is because once a business enters administration, debt recovery agencies no longer have the authority to collect what you’re owed.
This is because when a debtor enters administration, an insolvency practitioner takes control of the company with the aim of either rescuing the business, selling its assets, or closing it down in a structured manner. At this stage, debt recovery agencies, including firms like Darcey Quigley & Co, are limited in what they can do because the debt now falls under insolvency law.
What is Insolvency Law and how does it affect me from recovering my debt?
In short, insolvency law is the legal framework that governs how individuals or companies deal with financial distress when they can no longer pay their debts. In administration, this legal process prioritises creditors and freezes any enforcement action—including debt recovery efforts. All outstanding debts are essentially handed over to the appointed administrator, who will assess the company’s assets and liabilities and then distribute any available funds to creditors based on a strict legal hierarchy. This often means unsecured creditors (like suppliers or service providers) are at the bottom of the list and may only recover a small fraction of what they’re owed—if anything.
So, while debt recovery agencies can be highly effective when a company is still trading, once a debtor enters administration, any collection activity must stop, and the recovery process moves into the hands of insolvency professionals.
Why it is important to action debts as soon as possible?
Acting on unpaid debts as soon as possible with a debt recovery agency is crucial for several reasons. First, the longer a debt is left unpaid, the harder it becomes to recover – customers may face deeper financial trouble or even go into insolvency, reducing your chances of getting paid. Prompt action also sends a clear message that your business takes credit control seriously, which can deter late payments in the future. Darcey Quigley & Co are experienced in handling these situations quickly and professionally, often securing payment within days. Early intervention protects your cash flow, preserves business relationships, and gives you the best shot at full recovery before the situation escalates.
So how can Darcey Quigley & Co help with any unpaid invoices?
When it comes to recovering overdue invoices, Darcey Quigley stands out as a commercial debt recovery specialist that gets results – fast, without the hassle of court proceedings. Unlike traditional legal channels that can be time-consuming, expensive, and packed with red tape, we take a proactive, professional approach that protects your customer relationships while getting your cash flow back on track. Our focus is on resolution, not litigation, and our experienced team knows how to navigate complex commercial debt situations quickly and effectively – often securing payment within 48 hours.
So why wait for the legal wheels to turn when you can get paid now?
For further information, contact us on 01698 821468 or email us at [email protected]
Or use our quick and easy debt calculator here to find out how much you are owed in just a few clicks.
Lynne is the Founder and CEO of Darcey Quigley & Co.
She is passionate and determined to help businesses get overdue invoices paid quickly.
Having worked within the credit management industry for over 27 years and ran UK leading commercial debt recovery specialists Darcey Quigley & Co for over 17 years, Lynne has helped businesses recover commercial debts from every continent across the globe.
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