If the business that originally supplied you — the creditor whose invoice is now outstanding — has since closed down, been sold, deregistered, or wound up, that does not mean the debt disappears. The obligation to pay a debt survives changes to the creditor's business structure, and there are several ways the debt may still be pursued.
What may have happened to the debt:
- Debt assignment — the original creditor may have assigned (sold or transferred) the debt to another party before ceasing to trade. If so, the new owner steps into the shoes of the original creditor and can pursue recovery in their own right. Merion may be acting on behalf of the new owner.
- Liquidation or administration — if the creditor went into liquidation or voluntary administration, the debt would likely have been recorded as an asset of the company. A liquidator or administrator may continue to pursue outstanding amounts as part of winding up the company's affairs.
- Business sale — if the business was sold as a going concern, the buyer may have acquired the receivables (amounts owed to the business) as part of the purchase.
Who to deal with: If Merion is contacting you, we will be able to tell you who the debt is currently owed to and in what capacity we are acting. You are entitled to this information before you pay anything.
If you are uncertain about the status of the original creditor or the chain of ownership of the debt, raise a query with us directly. We will clarify the position in writing.
Was this article helpful, or still not sure? Our team is happy to talk it through.