Customers of an insolvent business

Identify what you paid for

Keep the order, receipt, terms, payment record and correspondence. Establish the legal supplier and whether goods were delivered, remain identifiable or were held for repair or storage. Goods you own are not automatically the business’s assets merely because they are at its premises.

A deposit or voucher is not automatically protected or held on trust. Its treatment depends on the arrangement. Continued trading does not itself mean historic vouchers will be honoured or every outstanding order completed; read the office holder’s actual announcement.

Check possible recovery routes

Credit-card purchases may engage statutory connected-lender liability where the conditions are met. Card-scheme chargeback is a separate mechanism with its own requirements and time limits. Insurance, guarantees or sector-specific protection may provide another route. A payment intermediary can affect the analysis.

• Identify the payment method and transaction date.
• Keep records of any claim made to a bank or insurer.
• Update the insolvency claim when a refund is received.

Claim in the insolvency where appropriate

If an amount remains owed, register it using the case instructions and supporting documents. Most ordinary customer claims are unsecured, but that description must not be applied to property held on trust or goods demonstrably owned by the customer without examining the facts. A distribution can take time and may be nil.

If you still owe the business money, its insolvency does not automatically cancel that debt. Verify new payment instructions independently before paying.

The position in England & Wales

Use England and Wales creditor guidance and the relevant procedure’s claims rules. Consumer Credit Act protection is separate from the insolvency dividend. A court order and a pending winding-up petition have different effects; rely on verified appointment information.