My debtor has ceased trading - what can I do?

The first question to ask is "what do I mean by ceased trading?". Are you talking about a business that has left its trading address, leaving an empty shell? Of a shop or restaurant which has a "Closed Until Further Notice" on the door? Does the appearance of "ceased trading" mean your debtor has gone into some sort of insolvency situation?

You can check whether the individual or company is subject to any insolvency by making some easy checks. For an individual, you can check the Individual Insolvency Register and for a company, you can check the Register at Companies House. Both these registers will show if your debtor is insolvent.

There is no central register to check the solvency of a firm/partnership - but instead you should check the names of the proprietors and see if they themselves are subject to some sort of insolvency procedure.

If no insolvency order is showing then you may want to take further action to pursue your claim. This further action may include:

• Serving a statutory demand - if the debt is not paid or disputed within 21 days and if the debt is more than £750, you can present a petition to the court for bankruptcy/winding-up
• Issuing a claim in the court and then entering judgment - you can choose the method of enforcement form the Enforcement Matrix

Full details of how to make a claim for money due can be obtained from the SLC Team or from Her Majesty's Court Service website at www.courtservice.gov.uk

In the case of companies not in liquidation you may also wish to contact The Office of Fair Trading or Company Law & Investigations Directorate (CIB) who are in a position to investigate wrong-doing.