Can You Sue A Company That Has Ceased Trading?

By Lewis Winehouse. Last Updated 19th April 2023. If you have been injured because a business that owed you a duty of care acted negligently, you could be entitled to claim compensation from that company. You may have been a customer of this business, such as a shop or a restaurant, or you may have been employed by them. If the business has since been liquidated, dissolved or closed, many people worry about whether they could still make a personal injury claim for the money they are owed. Can you claim against a dissolved company? Yes, you can claim against a liquidated company, closed company or dissolved company. However, it is a more complicated process.

If you wish to claim against a company which has been closed down, claim against a company which has been dissolved, or a company that has been liquidated, trust Legal Helpline to handle your claim. We are a trusted personal injury claims advisor and can provide you with expert advice if the company you are suing no longer exists. If you are eligible for compensation, we can provide you with a knowledgeable personal injury solicitor to handle your claim.

Call 0161 6969 685 now for your free consultation. You can also use our online claims form to contact us. If we can see that you are eligible to claim compensation, we will provide you with a No Win, No Fee solicitor to handle your claim, who will push to win you the maximum amount of compensation that you are owed.

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A Guide To Claims Against A Liquidated, Closed Or Dissolved Company

Liquidated, closed or dissolved company compensation claims

Liquidated, closed or dissolved company compensation claims

At Legal Helpline, our clients often ask us questions like: 

  • Could I claim against a company in liquidation?
  • Could I claim against a company that has been dissolved?
  • Could I claim against a company which has closed down?” 

If you have been injured or made ill because a business acted negligently, it is only fair that you should be able to claim compensation for your injuries. If the defendant goes into liquidation, is closed or becomes dissolved, it becomes harder for the claimant (injured party) to make their claim.

In this guide, we will look at why people make accident claims for compensation. We will also explain what it means if a business goes into liquidation, is closed down, or is dissolved. We will explain how to go about suing a limited company that no longer exists or how to make a personal injury claim against a dissolved, liquidated or closed company.

If at any time you have any queries or would like to proceed with a claim, you can call Legal Helpline for free legal advice on 0161 6969 685 and if we believe you have legitimate grounds for claiming compensation, we will provide you with a personal injury lawyer to handle your case. You can also use our online claims form to arrange a time for us to call you.

What Does It Mean If A Company Is Liquidated, Closed Or Dissolved?

Before we begin, let’s define some terms. We will also look at what it means if a company has closed.

What Does Liquidation Mean?

Going into liquidation is a process that takes place when the directors of a business realise that their company is no longer financially viable. Liquidation is a process of the business settling their affairs as smoothly as possible. The company begins the process of liquidating its assets, which means it sells off everything it owns to pay back the money owed to creditors and debtors.

What Does Dissolved Mean?

Dissolving a company, also known as dissolution or striking off, is when a business’s name is removed from the register of businesses at Companies House. This advises the UK government that it has ceased to trade. A business can only be dissolved if it has no outstanding debts or can pay these debts within 12 months.

Closed down is a general term which means that a business is no longer operating. It is possible to make a claim against a closed company which has been liquidated or dissolved. However, the chances of succeeding are lower than claiming against a company which is still operating normally. In such circumstances, it will be necessary to search for employers’ liability insurance details for the time period in which the accident occurred. The claim is then made against the insurance company if they can be traced. 

Can you claim against a company in administration? It can be possible to pursue a claim against a company in administration, but different steps have to be taken, such as requesting the permission of the administrators and keeping them informed of proceedings.

If you have been made injured or ill and the company responsible is no longer in existence, call Legal Helpline today. If we believe you could make a successful claim, we will provide you with an excellent personal injury solicitor to handle your case.

Types Of Accident Or Injury Which You May Claim For

In the United Kingdom, businesses owe customers, employees and other people who use the business premises a duty of care. This means that they are responsible for providing them with a safe and hygienic environment in which to eat, shop, work or go about other activities. The business is supposed to conduct regular risk assessments to identify, repair and remove a health and safety hazard. If they fail to do so and an employee, customer or another person using the business premises suffers an accident and is injured, or made ill as a result, this is known as negligence. The injured person may be able to claim compensation from the business, because of this.

Here are some examples of common personal injury claims that people make:

Slip, trip and fall accidents: Slip, trip or fall accidents are a common reason why people make personal injury claims. A slip, trip or fall accident can be caused easily. For example, a spillage on the floor which has not been mopped up, or sign-posted, can cause customers or employees to slip, trip or fall. Similarly, hazardous flooring such as loose carpeting or a cracked floor tile could result in a tripping accident. Many slip, trip or fall injuries will get better on their own, such as cuts and bruises. However, more serious injuries could be sustained, such as strains, sprains, or even fractured or broken bones.

Manual handling accidents: Manual handling accidents are accidents involving the lifting, carrying or moving of heavy objects. Workplaces are supposed to train their employees on how to carry out manual handling tasks safely. For example, only lifting objects within a safe weight to height ratio, and working in pairs where needed. For some tasks, equipment may be required which should be provided by the employer. If an employer neglects to take these precautions, manual handling accidents may happen. As a result, an employee may suffer a musculoskeletal injury, such as a slipped disc.

Road traffic accidents: If you have been injured because of a road traffic accident that was caused by negligence on the part of another driver, you may be able to make a road traffic accident claim. If the person who caused the road traffic accident was on duty at the time (for example a delivery driver driving a company vehicle) you may make an accident claim against their employer.

Cuts and burns: If you work as a chef or kitchen assistant in a restaurant and were cut or burned due to negligence on the part of your employer, you may be able to claim compensation. Cuts and burns can happen because of faulty or poorly maintained kitchen equipment, or because of a lack of care paid by your fellow workers.

How To Sue A Company That Has Ceased Trading – Top Tips

When you’re injured due to the negligence of a company, you should have grounds to claim compensation. If the company is no longer in business, you may be wondering how to sue a company that has ceased trading. This section includes some advice on what you can do to potentially claim against a company that has ceased trading.

  • Find the employers’ liability insurers: The insurers of the company need to be identified. When the company was still in business, it should have had insurers at the time of your injury, as is required by law for businesses. You could still potentially claim through their insurance, even if they have ceased trading.
  • Prove you were an employee: Gather proof to show that you worked there at the time of your accident. Employers owe employees a duty of care to take reasonable steps to keep them safe.
  • Provide evidence: Photos of the accident environment and photos of your resulting injury can both be used as evidence for your claim. You could also gather any relevant CCTV footage and medical reports.
  • Witness accounts: If they are willing, someone could give a statement about what happened to you if they witnessed the event. If you choose to hire a solicitor, they will gather these statements for you.

Use legal assistance:  Though not required by law, hiring a solicitor could mean you have support and guidance through every step of the claims process. If you choose a solicitor from our panel, they could help you gather the evidence you need to sue a company that has ceased trading.

Can A Dissolved Company Still Operate?

If you are wondering, ‘Can a dissolved company still operate?’ the answer is no. After a company is dissolved, the Crown takes control of its assets, such as:

  • Intellectual property.
  • Land or property.
  • Mortgages.
  • Shares.

However, you may still be able to bring forward a personal injury claim against a dissolved company. To be able to do this, you will need to find the employer’s liability coverage that was in place at the time of the accident. However, due to the company being dissolved, it may be difficult to trace this policy. If the policy cannot be traced, there may be no one who could pay you compensation.

We recommend working with a solicitor that has experience in dealing with these types of claims and could help you with increasing your chances of receiving personal injury compensation. Our panel of expert solicitors have years of experience handling various types of claims and may be able to help you with your specific case.

Get in touch with our advisors to learn more about making a claim against a company that has dissolved.

Could I Claim Against A Company That Is In Administration?

A company going into administration is different from a company being liquidated or dissolved. What does it mean for a company to go into administration? It means that a company that is no longer financially viable may now be managed by an insolvency protection company, also known as an administrator. The insolvency protector will act to protect the company against requests for debts to be paid, or from parties which may try to make a compensation claim against them.

Administration is a short term solution. In the future, the company will either be able to begin trading again or will have to go into liquidation, in which case you may be able to make a claim. If you were injured or made ill due to negligent actions or inactions on the part of a business that is now in administration, call Legal Helpline to talk about your possible options.

Could I Claim Against An Employer That Has Ceased Trading?

Legislation, such as the Health and Safety at Work etc. Act 1974, states that employers owe their employees a duty of care. This means that if an employee is injured or made ill on the premises of their employer, or in an environment the employer controls, the employer could be held liable for their injuries. As a result, the employer may have to pay the employee compensation for their accident at work.

All businesses are legally required to have employers’ liability insurance to protect their employees. If you have been injured whilst working for a business that has now gone into liquidation or has been dissolved, you may be able to make an accident at work claim. Call us today to see if you could claim against a company that has been dissolved or if you could claim against a company which has since closed down.

Claims Against A Dissolved Company- Calculating Compensation

We have included a table of injuries, and potential compensation awards for the pain and distress they may have caused. These are known as general damages and the table uses figures from the April 2022 version of the Judicial College Guidelines. If you were to sue a company that has ceased trading, your injuries may be valued with the help of this publication. Although we have included figures from the guidelines below, you should only use them as a guide.

Severe Leg Injuries (b) (ii)Very serious injuries that cause ongoing issues.£54,830 to £87,890
Severe Leg Injuries (b) (iii)Injuries to the joints or ligaments are included in this bracket.£39,200 to £54,830
Severe Back Injury: (a) (iii)Persisting pain from fractures to the discs of the back is covered in this bracket.£38,780 to £69,730
Moderate Back Injury: (b) (ii)Pain caused by disturbed ligaments or muscles is covered in this bracket.£12,510 to £27,760
Other Arm Injuries: (b)Serious forearm fractures affecting both or one arms.£39,170 to £59,860
Severe Neck Injury: (a) (iii)Severe tendon damage that could result in a significant disability is one injury covered in this bracket.£45,470 to
Moderate Neck Injury: (b) (i)Examples of injuries in this bracket include a fracture or dislocation that causes immediate and severe issues. They may need a spinal fusion.£24,990 to
Hernia: (a)Ongoing pain even after repair.£14,900 to
Most Serious Achilles Tendon Injuries (a)A severed tendon that causes several issues.In the region of £38,430
Moderate Foot Injuries (f)Fractures causing permanent deformity and other ongoing issues.£13,740 to £24,990

Please speak to our advisers for information about claims against a liquidated company.

Special Damages Which May Be Applicable To Your Claim

If you successfully claim against a liquidated or dissolved company, your compensation package may consist of two heads of claim: general damages and special damages. General damages are designed to compensate you for the pain, suffering and loss of amenity experienced as a result of the injury. Our compensation calculator section above provides estimates on the value of general damages.

Special damages are designed to compensate you for any financial losses or expenses you have incurred as a result of your injury or illness.

What could you claim under special damages?

  • Travel expenses
  • Medical expenses
  • Mobility equipment expenses
  • Home adaptation expenses
  • At home care expenses
  • Loss of income if you had to take time off work to recover.
  • Loss of future income if your injuries are severe enough to prevent you from returning to work.

Why Choose To Claim Compensation Through Our Team?

Making a personal injury claim against a dissolved company, or a company that has been liquidated is more complex than making a claim against a company that is still trading. You will need a knowledgeable and experienced solicitor to advise you on how to make a successful claim and to navigate the legal complexities. Fortunately, Legal Helpline can provide you with just that. Our service includes:

  • A one-to-one consultation with a claims advisor, who can help you take the right course of action.
  • An experienced personal injury solicitor, with decades of experience, working on your claim.
  • Our panel of solicitors works on a No Win, No Fee basis.
  • A promise that we will always push to win you the maximum amount of compensation you may be eligible to claim.

No Win, No Fee Claims Against A Liquidated, Closed Or Dissolved Company

Our panel of solicitors can give you the option of entering into a No Win, No Fee Agreement, also known as a Conditional Fee Agreement (CFA). The CFA is designed to offer claimants financial protection and the confidence to pursue justice. If you sign a CFA with a solicitor from our panel, you will not have to pay any fees upfront, nor will you have to pay any fees during your claim either. And if your claim is unsuccessful, you will not have to pay any of the fees your solicitor has incurred in pursuing your case.

If your claim is successful, your solicitor may seek a small contribution towards their costs. This is known as a ‘success fee’ and would be deducted from the compensation awarded at the end of the claim. Don’t worry, the success fee is legally capped and will be agreed with your solicitor before beginning your claim.

Start A Claim Against A Liquidated, Dissolved Or Closed Company

To begin your personal injury claim, call Legal Helpline today on 0161 6969 685, or use our online claims form. If we can see that you may be able to claim compensation for your injuries, a solicitor will start working on your claim as soon as possible. So call now for the chance to claim!. We’re looking forward to working with you!

Resources To Help You Claim Against A Company

How Much Compensation Can I Claim For An Accident At Work? – Find out what your claim may be worth in this guide.

How Much Compensation For An Accident In A Shop Claim? – Check what you could claim in this guide.

How Much Compensation For An Accident In A Supermarket Claim? – Check how much compensation you could be eligible to claim.

External Resources

A Citizens Advice Bureau Guide On What To Do If A Company Stops Trading Or Goes Out Of Business

Claiming Money Or Property From A Dissolved Company – A UK Government Guide


Guide by HE

Edited by REG