If a customer or business you work with becomes insolvent, your next move as a creditor is to make a claim. Whether you’re a small business owner, finance manager, or simply chasing a significant unpaid invoice, understanding how to submit a creditor claim in UK insolvency is essential.
Here’s a step-by-step guide to claiming what you’re owed.
Step 1: Know what type of insolvency you’re dealing with
Different types of insolvency include:
- Administration
- Liquidation (voluntary or compulsory)
- Company Voluntary Arrangement (CVA)
- Bankruptcy (for individuals)
- Debt Relief Order (DRO)
An insolvency practitioner (IP) will be appointed and notify creditors of what to do next. Don’t ignore this communication it’s your chance to act.
Step 2: Submit a Proof of Debt form
This is the document that formalises your claim. It usually includes:
- Your business name and contact details.
- The amount you’re owed.
- Details of the debt (unpaid invoices, rent arrears, services delivered, etc.).
- Supporting evidence, such as contracts, invoices, or statements.
You’ll often be given a deadline, so submit your claim as early as possible.
Step 3: Your claim will be reviewed
Once submitted, the IP will assess your claim to decide:
- If it’s valid.
- How much will be accepted.
- Where you rank (e.g. secured, preferential, unsecured).
You may be contacted for more detail or documentation so it pays to be organised.
Step 4: Get involved where possible
In some insolvency cases, you’ll have a chance to:
- Vote on decisions (like approving a CVA).
- Attend creditor meetings.
- Ask questions or suggest alternative proposals.
Your influence depends on the size of your claim, but even small creditors can make a difference.
Step 5: Wait for the dividend
After the IP has gathered assets, paid fees and secured creditors, preferential creditors & any remaining funds are shared among unsecured creditors.
While it’s rare to get the full amount back, you may receive a dividend payment. This could be anything from a few pence to several pounds in the pound.
FAQs: Claiming as a Creditor in the UK
Do I need a solicitor to claim as a creditor?
Not usually. Most creditors can submit a claim themselves. For complex or large claims, legal advice may help.
What if I miss the deadline to submit my claim?
You can usually still submit late but you may miss out on some payments if distributions have already been made.
How long does it take to get paid?
It depends on the complexity of the case. Some insolvencies resolve within months, others take years.
Being owed money by an insolvent business doesn’t mean all is lost. Submitting a creditor claim ensures you have a place at the table and a chance to recover some (if not all) of what you’re owed.
Need help making a claim? At Springfields Advisory, we support UK businesses and creditors throughout the insolvency process. Reach out if you’d like a guiding hand. solution that works for you and sets you on the right path.
To discuss a matter directly please call 0116 299 4745 or email info@springfields-uk.com
