Winning a judgment is not the same as getting paid. Before you spend on a claim, here is how to check a debtor company can actually pay — and how to spot the ones that cannot.
Before suing, check the debtor company is solvent and traceable: confirm it is still active at Companies House, read its latest accounts, and run a credit check. A judgment against a company with no money is hard to turn into cash, so this groundwork is worth more than any other single step.
A court fee spent on a company that cannot pay is money you may never see again. The check comes before the claim.
A County Court judgment confirms a debtor legally owes you money. It does not create funds that are not there. If you claim against a company with no assets, no income and no realistic prospect of paying, you can win on paper and still recover nothing — having paid the court fee for the privilege. That is why the most valuable step in any recovery is the one before the claim: checking the company can actually pay.
Most of this is public. Twenty minutes on Companies House answers the questions that decide whether a claim is worth it.
1. Is it still active? Search the company at Companies House (free) and check its status. A company that is dissolved, in liquidation or in administration cannot simply be taken to court in the usual way — and a dissolved company has to be restored first, which is a separate, involved process.
2. Can it pay? Read the latest filed accounts for net assets and cash, and run a business credit check for a score and credit limit. A low score, negative net assets or a run of existing County Court judgments all point the same way.
3. Who exactly owes you? Confirm the legal entity. A limited company is pursued in its registered name and number; a sole trader is pursued as the individual. A trading name on its own cannot be taken to court, so get this right before you file.
4. Any warning signs? Overdue accounts, a falling balance sheet, a winding-up petition or frequent changes of director or registered office are all reasons to move quickly rather than let the debt age.
New to the terms here? See the glossary, or read the full recovery process.
A weak debtor is not always a dead end — but it does change the maths, and timing matters more than ever.
If the checks suggest a company is struggling, you have a decision to make rather than an automatic stop. Acting early — while the debt is fresh and the company is still trading — gives you the best chance of being paid before its position worsens. If a company becomes insolvent, an ordinary supplier usually ranks as an unsecured creditor, who are paid last and often only in part.
Where there are real assets, or the debt is large, a claim can still be worthwhile even against a shaky company. Where there is nothing to recover, the honest answer is sometimes to write it off and tighten your terms for next time. If insolvency looks likely, consider your own legal or insolvency advice — RobinReturn is not a law firm and does not give legal advice.
Often not. A County Court judgment confirms the debt, but it does not create money that is not there — if the company has no assets or income, you may spend the court fee and still recover nothing. Checking the company can pay before you claim is the single most useful thing you can do.
Start with Companies House, which is free: confirm the company is still active (not dissolved, in liquidation or administration), and look at its latest filed accounts for net assets and cash. A business credit check adds a score and flags any judgments already registered against it.
Warning signs include overdue or repeatedly late accounts, a fall in net assets, several County Court judgments already against it, a winding-up petition, and frequent changes of director or registered office. Any of these is a reason to act quickly rather than wait.
You must name the correct legal entity. A limited company is sued in its registered name and number; a sole trader is sued as the individual behind the trading name. A trading name on its own cannot be taken to court, so confirm the entity at Companies House before you file.
If a company becomes insolvent you usually rank as an unsecured creditor, who are paid last and often in part. Acting early — while the debt is fresh and the company is still trading — gives you the best chance. If insolvency is likely, you may want your own legal or insolvency advice.
If the debtor can pay, a reminder is the cheapest first move. When you open a case, RobinReturn looks the debtor up at Companies House. RobinReturn is not a law firm and does not give legal advice.