Advice For A Creditor Following Liqudation Or Will I Ever See My Money?

[nellypope]

I am a freelance graphic designer, I had a regular client who has sadly gone into voluntary liquidation. They have outstanding invoices, for which I obviously have copies of and can substantiate my claim. However there was another project with a third party client which I quoted for and was commission by the client but the project wasn't finished and therefore not invoiced. There seems to be lots of information for a company that's going to/gone/planning to liquidate but nothing for the simple creditors like me.

The amount was not a kings ransom but I would like to get paid for the work. The paperwork is a nightmare (I've only been trading since August) the liquidators don't return your calls and I have a limited time to return my paperwork.

I have a form 4.25 and a form 8.5. Do I need to fill in both?
Can I claim for ALL work, invoiced or not?
What on earth is a preferential debt? does it apply to me?

[Buenchico]

>>>What on earth is a preferential debt? does it apply to me?

'Preferential debts' are debts which, by law, must be paid out first before any other debts can be considered. They are basically payments to employees (not to freelance contractors) and pension schemes, so they don't apply to you.

This Word document might help:
http://www.bis.gov.uk/assets/insolvency/docs/publication-word/guide-for-creditors-13-1199.doc

For further information you can contact the Insolvency Enquiry Line on 0845 602 9848, between 8.00am and 5.00pm Monday to Friday, or email [email protected]

However don't hold out too much hope of payment. Creditors often only receive a tiny percentage of what they're owed (or nothing at all) from the liquidation of a company. If they held major assets (such as owning the building they occupied) there might be plenty of money to go round but if, as with most companies, everything was rented or leased, there will be hardly any assets to distribute to creditors.

[nellypope]

Thansk Buenchico, as ever your advice is spot on. Sadly you have confirmed my suspicions, I can't see much (if any) recompense for the work. Still it's worth a try. Thankyou

[Skyline D]

As regards your invoices owing by the client you can but submit your claim and hope you get a few pence in the pound. It's unusual, but no by any means unheard of depending of the level of security in the business, to receive all of it or anywhere near that.

As regards the work indirectly for a thrid party which has not yet been invoiced. You'll be entitled to invoice for the amount of work that was done I'm sure but might it be feasible to contact the third party directly and offer to finish the work for them directly for a fee? If they need it done and are happy with it they may be willing to deal with you directly or at least put whoever takes over their commission in touch with you. Worth a try anyway.