How to recover a credit from a company in liquidation

Credit recovery from a company in liquidation is an extremely delicate operation since the legal entity in question is in the process of winding up and consequently recovering the credits with success can become somewhat difficult. In this brief and concise guide, we will illustrate the main actions to be implemented in order to recover a credit from a company in liquidation as quickly and effectively as possible.

The liquidation

Before going into detail on what can be done regarding debt collection in this specific circumstance, it is appropriate to open a brief parenthesis on what is meant by liquidation and in what modality the same can be articulated.

We speak of voluntary liquidation when a company chooses to terminate the financial relationships contracted with its creditors. Through voluntary liquidation – so called because the company spontaneously chooses to start the procedure – the company changes its corporate name, adding “in liquidazione” at the end of the wording. To give a concrete example, if the company” Rossi Srl “starts the voluntary liquidation process, its name will become” Rossi Srl in liquidazione “. Through voluntary liquidation, a company transforms its assets into cash, thereby settling its debts with its creditors. Not surprisingly, the start of a voluntary liquidation procedure precedes, in most cases, the extinction of the company itself which, once the creditors are satisfied, can be definitively dissolved.

While voluntary liquidation may appear to be a quick and easy procedure at first glance, it actually hides many risks and pitfalls for creditors: is in fact, it is possible that a company will be extinguished before having paid off all its debts. In this case, creditors fear the specter of a long and tortuous procedure judicial for the recovery of their credits. In order to protect themselves from the occurrence of any non-transparent situations, creditors can implement some specific moves and strategies. Let’s see the main ones together.

How to recover a receivable from a company in liquidation: the verification of the liquidation status

The first trick for an effective debt collection consists in verifying the veracity of the liquidation status by requesting the company registration certificate. If this document does not show the actual change of the company name (with the addition of the wording “in liquidation” after the initials, as we have seen previously) would mean that we are dealing with a reality that has falsely declared itself in liquidation, trying not to pay its debts with deception and artifice.

Debt collection from companies in liquidation: the notification of formal notice to the liquidator

To take action in recovering receivables from a company in liquidation, you can use a little trick: notify a legal notice directly to the address of residence of the liquidator of the company in procedure. Some administrators and/or liquidators, in fact, omit to update the address of the company’s registered office, making the debt collection procedure even more complex. By contacting the liquidator directly, on the other hand, there is no risk that the legal notice will not be delivered to the recipient within the desired time frame. In order not to make an error, it is necessary to remember not to address the legal warning to the liquidator, but to the company and to send it to the address of residence of the liquidator. A small detail, which can however make the difference for the success of the debt collection procedure.

The importance of investigations on the balance sheet of the company in liquidation

Sometimes it may happen that, despite the verification of the Chamber of Commerce registration and the sending of the warning, there is no response from the company in liquidation. In the latter case, it becomes appropriate to carry out patrimonial investigations concerning the company itself in order to highlight the possible availability of movable and immovable property to an extent that satisfies the credit claimed.

The examination of the final liquidation balance sheet

A further action that can be carried out for credit recovery from a company in liquidation consists in perform an examination of the final liquidation balance that the debtor company itself is required to publish, showing which and how many assets have been assigned to third parties. If administrators manage corporate assets, such as money, cars and / or properties to themselves or to shareholders, it becomes the right of creditors to challenge the liquidation deed and start a judicial procedure against them in order to have their credit lines satisfied.

In this regard remember the art . 2495.2 c.c. “Unsatisfied corporate creditors can assert their claims against shareholders, up to the amount of the sums collected by them on the basis of the final liquidation balance”.

We emphasize , therefore, the so-called “phenomenon of succession type“, whereby the obligations of the company are not extinguished but are transferred to the shareholders who they are liable within the limits of the amount collected following the liquidation or unconditionally if the same have been unlimitedly liable shareholders, since in default the right of the corporate creditors would be unjustly sacrificed.