What happens if the parking company goes bust?
Last updated: June 2025 · 8 min read
If the parking company goes into administration or liquidation, the outstanding parking charge may be sold to another company or written off entirely. If the company ceases to exist, it generally cannot pursue the charge further. However, if the debt was assigned to another entity before dissolution, that entity may continue to pursue it.
- --A dissolved company cannot pursue a court claim
- --Debts may be sold or assigned to another company before dissolution
- --If no assignment occurred, the charge effectively dies with the company
- --Check Companies House for the company's current status
Key Takeaways
- If a parking company is dissolved, it cannot issue or pursue court claims.
- Debts may be assigned to a third party before the company closes, allowing them to continue pursuit.
- Check the company's status on Companies House to verify whether it still exists.
- If a court claim was filed before dissolution, the claim may be struck out if no party takes it over.
- Being approached by a different company about the same charge may mean the debt was assigned.
What Applies to You
If the parking company has been dissolved
A dissolved company cannot take legal action. The charge should not be pursued further.
Verify the dissolution on Companies House. If contacted by anyone, inform them the company no longer exists.
Low urgencyIf the company is in administration
An administrator is managing the company's affairs. Outstanding debts may still be pursued or sold.
Wait to see whether the administrator pursues the charge or sells it. Do not pay preemptively.
Low urgencyIf another company is now pursuing the charge
The debt may have been assigned. The new company must prove the assignment was valid.
Request proof of the assignment and verify the new company's authority to pursue the charge.
Act soonWhat Dissolution Means for Your Charge
When a company is dissolved, it ceases to exist as a legal entity. It cannot file court claims, instruct solicitors, or enforce debts. If you have an outstanding parking charge from a dissolved company, the charge effectively dies with the company unless the debt was assigned to another entity before dissolution. You can check a company's status for free on the Companies House website.
Can the Debt Be Sold to Someone Else?
Before dissolution, a company may sell its outstanding debts to a third-party debt purchaser. If this happened, the new owner of the debt may contact you about the parking charge. They must be able to prove the assignment was valid and that they have the right to pursue the debt. You can request a copy of the deed of assignment.
Need help building your defence?
Answer the QuestionnaireWhat About Pending Court Claims?
If a court claim was filed before the company went bust, the claim may be transferred to the administrator or assignee. If no party takes over the claim, it will eventually be struck out for want of prosecution. If you have a pending court claim from a company that has since dissolved, apply to the court to have the claim struck out.
Frequently Asked Questions
How do I check if a parking company still exists?
Search for the company on the Companies House website (beta.companieshouse.gov.uk). The company's status will show as Active, Dissolved, In Liquidation, or In Administration.
Can a dissolved company's solicitors still pursue me?
Solicitors acting for a dissolved company have no client and therefore no authority to pursue the claim. If they continue to contact you, request confirmation of their client's current status.
What if I already paid before the company went bust?
If you paid before the company was dissolved, the matter is closed. If you paid to a company that was already dissolved, you may be able to recover the payment, as a dissolved company cannot legally accept payments.
Should I still respond to letters from a company in administration?
You should keep all correspondence but you are not obliged to pay. The administrator is managing the company's affairs and may decide the charge is not worth pursuing. Wait to see what action, if any, the administrator takes.
Can the land owner issue a new charge if the parking company is gone?
The land owner may appoint a new parking company, but that new company cannot retroactively issue charges for events that occurred under the previous operator's contract. Any new charge would need to relate to a new contravention.
Don't pay until you know your rights
Our defence documents are grounded in the Protection of Freedoms Act 2012, the Consumer Rights Act 2015, and the Pre-Action Protocol for Debt Claims. Customers have used these arguments to get charges dropped and claims discontinued.
Start Your DefenceRelated Scenarios
FightMyPCN is a document preparation service, not a law firm. The information on this page is provided for educational purposes only and does not constitute legal advice. Each case is different and outcomes depend on individual circumstances. If you are unsure about your position, consider seeking independent legal advice.