AnswersWhen a client goes under
What is a creditors' meeting or "decision procedure", and should I take part?
The short answer
Usually yes. A decision procedure1 is how a liquidator asks creditors to decide something, and a physical meeting is held only if enough creditors ask for one, so you can usually take part without leaving your desk. Send your proof of debt first: without it you can neither vote nor object6. Under deemed consent, silence counts as a yes unless creditors holding 10% in value2 object.
England and Wales only. WolfX is software, not a law firm.
The numbers
The lines that decide it.
What you can add
A £4,600 claim against £212,000 of debts
Say you invoiced another business £4,600, due on 31 July 2026. Its creditors' voluntary liquidation begins on 15 September 2026, 46 days late, and you add interest and the fixed sum to that date. The invoice went late in the second half of 2026, so the rate is 8% over10 the 3.75% Bank Rate11 on 30 June: 11.75%. Say the company's debts total £212,000, as its own list of creditors shows.
That is 2.23% of the debts. Ten per cent2 is £21,200, so you hold a little over a fifth of what it takes to stop deemed consent. Whether your vote decides it turns on how many others vote: a decision needs a majority in value of those voting7, so if few return forms, £4,738.12 can carry it. Once in, the proof is both your vote and your place in the queue.
The road ahead
Five steps. Free from your desk.
Step 1: Find the decision date
The notice names the decision date and what is being decided. In a creditors' voluntary liquidation that is mainly who the liquidator is: the creditors' choice beats the company's3 unless a court orders otherwise.
It can also cover a committee of up to 5 creditors4 and the liquidator's pay, which silence cannot approve2: pay needs a vote. An administrator's notice asks about proposals instead: see administration.
Step 2: Send your proof of debt
Without a proof received by the decision date6 you cannot vote or object, and it must be admitted for voting. For a meeting, the cut-off is 4pm on the business day before. The steps are in how to claim money from a company in liquidation.
Step 3: Work out your share of the vote
Votes are counted by the amount of your claim, as set out in your proof once admitted. A decision needs a majority in value7 of those voting, not of all creditors, so your weight depends on who else votes. Divide your claim by the total debts to see how far you are from the 10% lines.
A request for a meeting also counts creditors by number, so with few creditors a small one can matter.
Step 4: Return the form, or vote online
Step 5: Ask your questions in writing
Send the letter below. If a physical meeting is called, ask to attend remotely12; the convener may agree. Go in person only if you want an answer face to face.
A letter you can copy
Covering email with your proof of debt
Send it as soon as the notice arrives, with your proof of debt attached, a few days before the decision date.
Tap a highlighted gap to see what goes in it.
Send it by email so it is dated, and post a copy as well if the notice gives a postal address. Keep the sent email with a copy of the proof.
When not to bother
When it isn't worth it
- Your claim is a few per cent of the debts. Send the proof, return the form and stop; there is no need to travel. The same proof is how you claim any dividend.
- A court made the liquidation order. The Official Receiver is liquidator first5. Creditors choose a replacement only if the Receiver seeks nominations, or a quarter in value ask.
- It is a members' voluntary liquidation. The directors have declared the company can pay its debts in full, with interest, within 12 months. Send your invoice to the liquidator; this page does not cover it.
- The company is Scottish or Northern Irish. Scotland and Northern Ireland have their own insolvency rules, so the cut-offs and forms differ; follow the notice and ask the liquidator there.
- It is a company voluntary arrangement. The vote is on a proposal and needs three-quarters in value7 of those responding. See what a CVA means for a supplier.
The Wolf's note
Silence is not neutral under deemed consent: unless creditors holding 10% in value object, it is a yes. Read what the yes is for and get your proof in. Object only if your share, with others, can reach the line.
Mr. Wolf · the AI inside WolfX
What comes next
Your next move
A company that owes me money has gone into liquidation. What happens to my invoice?
Your invoice joins a queue behind lenders, the costs, wages and some HMRC debts, so suppliers usually get little.
7 min read · Letter included
A company that owes me money is in administration. What now?
You can't sue a company in administration without the administrator's consent or the court's permission.
7 min read · Letter included
What is a CVA, and what does it mean for me as a supplier?
Vote. A CVA is a deal to pay a company's creditors over a fixed period.
6 min read · Letter included
Don't want to do this yourself?
The Wolf does every step for you. He works out the sums, writes the letters and keeps track of every date. Nothing goes without your yes.