You're now an unsecured creditor for whatever the client owed you when it went into administration. Confirm who the administrator is, send them a claim with copies of your unpaid invoices, and stop chasing the old debt, because court action is on hold while the company is in administration. Expect to get back little or nothing, and talk to the administrator before you change how you supply the client.
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The short version
- You become an unsecured creditor for what the client owed when it entered administration.
- Court action is on hold while the company is in administration, so stop chasing the old debt.
- Send the administrator a proof of debt with copies of your unpaid invoices.
- Unsecured creditors are paid after others and often get little or nothing back.
- You may be able to reclaim the VAT on a written-off debt, so ask your accountant.
What administration means for your invoices
When a company goes into administration, a licensed insolvency practitioner takes control of it. Their job is usually to rescue the company or sell its business, and failing that to get the best return for the people it owes.
For you, the practical change is that the unpaid invoices from before that date become a claim in the administration. Court action is on hold while the company is in administration, so letters before action and late payment threats are unlikely to help for now. The old invoices are dealt with through the administrator, not through your usual chasing.
Companies can keep trading in administration, so the client's staff may still be emailing and asking for support. Treat the old debt and any new work as two separate conversations.
What to do in the first week
- Check Companies House for the company's insolvency details, including the administrator's name and firm, and the date the administration began.
- Pause automatic reminders and direct debit collections for that client, and don't take a payment for the old invoices until you've spoken to the administrator.
- Pull together the unpaid invoices, a statement of account, the contract and anything showing the work was delivered.
- Send the administrator a proof of debt, which is their claim form, with copies of those documents. If you haven't heard from them after a few weeks, get in touch.
- Before supplying anything new, agree in writing with the administrator how it will be paid for.
Agreeing new terms is safer than relying on your contract. The rules can limit what you can do with an ongoing supply contract once a client is in an insolvency process, so take advice before you stop supplying or switch anything off.
How much you're likely to get back
Unsecured creditors, who include most suppliers, are paid after others, such as the costs of the administration and lenders with security, and they often get little or nothing back. How much there is depends on what the company owns and who ranks ahead of you, and the administrator's reports to creditors will tell you more as the process goes on.
You may be able to reclaim the VAT on a written-off debt, so ask your accountant once it's clear the invoice won't be paid.
Keep the claim simple and your paperwork tidy. If there is a payout to unsecured creditors, it's shared between everyone who has proved their debt, so make sure your proof is in.
How to lower the risk next time
Watch how clients pay for early signs, such as invoices that used to clear in 30 days drifting to 50, part payments, a cancelled direct debit, or a finance contact who stops replying.
Shorter terms and smaller, more frequent invoices limit how much can build up before you notice. Collecting by direct debit from the day the contract is signed means each invoice is taken on its due date, so a client who can't pay shows up as a failed payment on the due date, without waiting for an aged debtors report. And reviewing anyone whose balance keeps rising, before you take on more work for them, gives you time to ask for a deposit or tighter terms.
Adfin can collect by direct debit from the day a contract starts, and its AI Customer Agents can chase overdue invoices at the intervals you choose and send a statement when a client goes quiet. When a client does go into administration, you can pause reminders and collection for that one customer in Adfin while everything else carries on.
Common questions
Can I still take a company in administration to court? Generally not. Court action is on hold while the company is in administration, so talk to the administrator or take advice instead.
How do I claim money from an administrator? Send them a proof of debt, their claim form, with copies of your unpaid invoices and a statement of account. Contact the administrator if they haven't written to you.
Will I get any of my money back? It depends on what the company owns and who ranks ahead of you. Unsecured creditors are paid after others and often get little or nothing back.
Can I stop supplying a client that's gone into administration? The rules can limit what you can do with an ongoing supply contract once a client is in an insolvency process. Take advice before changing anything.
Can I reclaim the VAT on an invoice the client never paid? You may be able to reclaim the VAT on a written-off debt. Ask your accountant.
What's the difference between administration and liquidation? Administration usually aims to rescue the company or sell its business as a going concern. Liquidation ends the company and sells what's left to pay its creditors.
Sources
- GOV.UK - If an insolvent company or bankrupt person owes you money (accurate as of October 2026) https://www.gov.uk/government/publications/claim-money-back-from-a-bankrupt-person-or-company-in-compulsory-liquidation-guidance-for-creditors/if-an-insolvent-company-or-bankrupt-person-owes-you-money
- HMRC - Relief from VAT on bad debts (VAT Notice 700/18) (accurate as of October 2026) https://www.gov.uk/government/publications/vat-notice-70018-relief-from-vat-on-bad-debts/vat-notice-70018-relief-from-vat-on-bad-debts
