Company insolvency.

[Fuzzy165]

I hope someone can help.

I have lost a court case against a client. They refused to pay for materials and works completed and then sued for breach of contract when we stopped work. Judge found in their favour, a total of over £7,400.00.

Payment is is due tomorrow and the company (limited) cannot pay. No money in the accounts and no assets to sell. What should I do? It's been suggested I do nothing and wait for the claimants to chace the debt and have the company wound up but I don't like the idea of this a hanging over me.

Any advice?

Many thanks in advance.

 

[Plonker 3]

Contact either a solicitor or your local CAB would be a good start.

 

[tazz]

You need to declare the company bankrupt.....this will cost £700 plus fees, and will last aprox 14-18 months.....If you wait for a claimant to sue for bankruptsy this will continue for upto 4years.
Suggest you take legal advice asap

 

[Leesparkykent]

What a horrible situation, can't you lodge an appeal so it gives you more time? Best talking to a solicitor though.

 

[shanky887614]

sorry to hear that, the cab will be able to offer legal advice to help.

best of luck

 

[tazz]

The problem is theses day the solicitor fees can easily reach £7k...been trying to dig myself out of a whole since loosing £47k 2 years ago..I really feel for you, its not a nice situation

 

[Anthony S]

If your company can't pay, it can't pay its that simple and if you have done nothing wrong ie run a company that was insolvent then you ain't done nothing wrong.

Go back to work as a sole trader in the mean time your entitled to earn a living.

 

[ian.settle1]

As said put the company into Administration

 

[Guest77]

I hope someone can help.

I have lost a court case against a client. They refused to pay for materials and works completed and then sued for breach of contract when we stopped work. Judge found in their favour, a total of over £7,400.00.

Payment is is due tomorrow and the company (limited) cannot pay. No money in the accounts and no assets to sell. What should I do? It's been suggested I do nothing and wait for the claimants to chace the debt and have the company wound up but I don't like the idea of this a hanging over me.

Any advice?

Many thanks in advance.

Can't you or your wife take out a 7.5k personal unsecured loan from your bank to clear the debt? this way you can shut the company down without credit issues and a history which may come back to bite you?

Out of interest, although it is now done and dusted what happened to make this situation spiral out of control?

 

[shanky887614]

Can't you or your wife take out a 7.5k personal unsecured loan from your bank to clear the debt? this way you can shut the company down without credit issues and a history which may come back to bite you?

Out of interest, although it is now done and dusted what happened to make this situation spiral out of control?

unless it is agreed in the contract to have part payments etc then its not unreasonable for the client to refuse payment untill completion and there iis nothing the op could have done.

if the op added payment timescale to it then he could have sued the customer rather than the other way around

 

[Guest77]

unless it is agreed in the contract to have part payments etc then its not unreasonable for the client to refuse payment untill completion and there iis nothing the op could have done.

if the op added payment timescale to it then he could have sued the customer rather than the other way around

What the hell are you on about? the judge backed the client, the OP obviously was in the wrong or he should appeal, it isn't very often a judge rules against a company carrying out work, something went wrong didn't it, and communication more than likely the reason, we have all had customers refuse to pay, the issue now is paying the 7,400 and clearing the debt to avoid a nightmare future credit history.

 

[Anthony S]

If the company is broke why should a Director borrow a personal loan to pay the company debts ?

 

[Guest77]

The problem is theses day the solicitor fees can easily reach £7k...been trying to dig myself out of a whole since loosing £47k 2 years ago..I really feel for you, its not a nice situation

Gasp!! that is a serious amount of money to anyone, feel for you mate, that is pretty shocking.

 

[Guest77]

If the company is broke why should a Director borrow a personal loan to pay the company debts ?

limited mean limited liability, he will still get some debt, if he clears the debt as it is so small it will avoid future credit problems, if the debt was larger then maybe a different story. If anyone thinks you can just walk away from it think again.

 

[Anthony S]

limited mean limited liability, he will still get some debt, if he clears the debt as it is so small it will avoid future credit problems, if the debt was larger then maybe a different story.

All depends what the sharing holding is ? might only be £100