A customer is going into administration owing us money what can we do?

Question

A customer is going into administration owing us money what can we do?

Answer 1

Not a lot.  The administrators will either try to sell on the company as a going concern or liquidate it.

If it's sold, the new owners will need to inject enough cash to make the company solvent and you stand a pretty good chance of getting paid.

If it's liquidated, the administrators will sell off the assets and pay the priority creditors (i.e. the taxman).  If there's any left, it will be shared out among the other creditors.  The administrator should keep you informed of developments.

Answer 2

Nothing other than write it off.

Answer 3

nothing at all....their official receiver will write to you with that customers statement of financial affairs and then the debt will be written off. Unless the customer has paid another creditor more favourably than you then the receiver will request that money back from that creditor and he/she will then evenly distribute the money reclaimed equally amongst all the customers creditors. Otherwise i'm afraid you'll have to write the debt off.

Answer 4

Get round there quick and grab what you can.

Answer 5

Nothing

Answer 6

You may "write off" straight way, with out wasting any time and making any efforts, if you are proprietorship firm, or partner ship concern.

However, if you are Private or Public Limited company, you shall  inform your Management, make certain efforts, depending upon the amount to be realised and than "write off" after obtaining the approval of the competent authority.

In case the amount to be realised is very large, take help of law as well as press, and make dent, before writing off.

Good Luck !!