I had a business taken down this way. We were taken for £250,000 and it was terminal for us. But it took another firm along with it - we were third in line.
Main contractor building apartments in London, our customer had the contract for main interior fitment of properties (1800 properties in total).
We credit checked our customer, got the all clear from our Bank.
Provided £250,000 worth of goods. Main contractor goes into liquidation and takes our customer for £450,000 - our customer goes into liquidation and takes us for £250,000 - bankrupt.
I personally went bankrupt on this due to securities I had in place - at the time I was sick from it all - but you live and learn now - the lesson I learned was give no one credit. It keeps my business small now - but I won't get knocked again.
The biggest issue I have is the stigma of bankruptcy. There's no categories for who, what where and why. So for 6 years I was lumped in the same category as everyone else who'd spent too much on holiday's credit cards and 50" tv's.
I'd like to see a Personal and business bankruptcy classification.