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Company gone into liquidation - help and advice?

Discussion in 'Accounts & Finance' started by Bridget1968, Dec 17, 2008.

  1. Bridget1968

    Bridget1968 UKBF Newcomer Free Member

    Posts: 96 Likes: 4
    One of my clients has just found out that a company that they have invoiced has gone into liquidation. The debt isnt very old but of course we realise that we are not going to get any money.
    What would you suggest is the best way to deal with this? write this off and reclaim the vat??? Or should we kept the debt on and just make a provision for it in bad debts in the hope we may get something? ( which i think is unlikely )
    Will we get paperwork from this company or its liquidators which will enable us to make a claim??? what usually happens in this scenario?

    I havent come across this directly before so any help and advice would be very useful. :|

    Thanks everyone, Bridget
    Posted: Dec 17, 2008 By: Bridget1968 Member since: Oct 17, 2007
  2. crown_neg

    crown_neg UKBF Newcomer Free Member

    Posts: 3 Likes: 0

    was the work undertaken a product or a service? If a product, you may have an option under retention of title to get this back. Re reclaiming the VAT, you will need to refer to the VAT booklet about the procedure and timing.
    If you cannot get the goods back or a service was provided, ensure that you do record the debt with the Insolvency Company dealing with the company.
    Posted: Dec 18, 2008 By: crown_neg Member since: Dec 18, 2008