UK seller insolvent: claim my deposit or goods?
Separate a claim to particular goods from a claim for money back. Gather the contract, payment trail and stock records, then contact the appointed insolvency practitioner or official receiver. Repayment is not guaranteed; check any further payment request before acting. Factory and shipment records can be checked by Cambridge China Bridge.
Confirm the seller and the insolvency contact
Match the company on your contract and invoice to the company receiving your payment. Our guide to seller versus agent explains that distinction. This guide concerns an insolvent UK seller, rather than a factory that has stopped replying.
Check official insolvency records and confirm with the relevant authority whether the company is in liquidation or administration and who is handling it. Contact the appointed insolvency practitioner, or the official receiver handling a compulsory liquidation. Send your order details and ask who will deal with your goods and money claims.
Build an ownership file for identifiable goods
Do not treat a deposit receipt or a production photograph as your complete ownership file. Gather the agreed terms, ownership clause, invoice, payment confirmation and any written allocation of goods to your order. Ask your solicitor to assess whether these support a claim to the goods. Read ownership and transit risk alongside your contract.
Ask for batch references, carton markings, stock records, inspection photographs and the current location. Trace the records from factory to warehouse or carrier. Send the case handler your ownership claim promptly and request written confirmation before arranging collection. Official receiver guidance says owners should, wherever possible, be asked to collect their property without delay.
Register the money claim separately
If you paid for undelivered goods and seek repayment, contact the case handler to be added to the creditor list. For compulsory liquidation, ask for the proof of debt form and submission instructions. Attach the contract, invoices and payment records, explain what remains undelivered, and identify any repayment already received.
Registration does not promise repayment. Government guidance says the amount depends on available assets and claims, and you may receive nothing. Tell the case handler about any parallel ownership claim and ask how to record it alongside the money claim. Keep copies and follow the deadlines in their correspondence.
Check before paying a balance or release charge
Insolvency does not erase money you owe: government guidance says it still has to be paid. Before responding to a demand, verify the sender independently and ask the case handler to confirm the contractual basis, amount due and authorised receiving account. If delivery obligations or the balance are disputed, seek advice promptly.
For a proposed completion or cargo release payment, ask which goods it covers, where they are, who can authorise release and what remains unpaid to the factory, warehouse or carrier. Require a written delivery plan and confirmation of how your existing deposit is treated. Do not rely on an old salesperson's assurance that another payment will rescue the order.
Verify the physical order before agreeing a rescue
Ask for a current stock check and a clear distinction between finished goods, work in progress and materials. Request shipment documents and direct confirmation from the named custodian. Our guide to cargo release documents helps you frame the document request.
Keep factual checks separate from the legal decision about ownership. Cambridge China Bridge's staff in China can help check factory progress and obtain order records. Share those findings with the case handler and your adviser before agreeing fresh payments, a replacement contract or collection.
Frequently asked questions
Will I get my deposit back if my UK supplier goes bust?
Repayment is not guaranteed. Contact the case handler to register your money claim and provide the order and payment records. The outcome depends on available assets and claims.
Can I collect goods I have already paid for?
Submit the contract and records identifying the goods to the case handler. Ask for confirmation of your ownership claim and collection arrangements before sending a vehicle.
Do I still owe the balance if the seller is insolvent?
Insolvency does not erase money you owe. Verify the demand with the case handler and check the contract. Seek advice promptly if the balance or delivery obligations are disputed.
What documents should I send with a creditor claim?
Send the contract, invoices, payment confirmations and an explanation of what is undelivered. Include relevant correspondence and tell the case handler about any separate claim to identified goods.