Company wont pay help

[copthis1]

I am a sole trader who has been doing some work for a company who owe 5 invoices totalling approx �1100 from as far back as last June. The director has now told me that the company has ceased to trade and that I need to speak to her accountant. I have emailed him and he says that it is to early to judge whether I will get paid as information is being collected.The Companies house website does not show any status of the company as regards liquidation etc.
What is the best thing I can do next..... small claims court?
This is a lot of money to me and I cannot afford to lose it, but not knowing the official staus of the company is holding me back.

Any help would be well appreciated.
Ian

[Lord Unstone]

I think you are on a hiding to nothing. If the firm is now bankrupt, the only ones who will get any money are the good old VAT man, tha tax man, and the liquidators. Small claims court you might, only might, get a judgement, but that is no guarantee that you'll get paid. There is very little you can do. Even debt collectors are no guarantee. You have lost your money I am afraid to say. I have been there a few times in my 25 years of trading, and now take deposits from new clients, or expect payment on invoice. I have even been known to have gone into a restaurant, and removed all the menus I had supplied: even from the customers reading them! Didn't get me my money, but I felt better for it!

[copthis1]

Many thanks for the reply..... I dont know if liquidators are in yet. That is one of my problems.

The director did say that they were owed more than they had to pay out.

[Ethel]

If the company has ceased trading you need to move swiftly.

Send them a letter and head it 'Final Notice Before Legal Action'.

Something like:

Dear ...

My records show the following invoices have not been paid, despite further requests for payment:
(brief details of invoices)

If I do not receive full payment of �x within 14 days I shall commence legal proceedings to recover all monies due.

Yours sincerely,

Then if you do not get payment you can start legal action in the small claims' of the county court. You can do it online and it is straightforward.

[copthis1]

Would it be acceptable if I type the letter and send it as a PDF file so it gets there today?

Regards

Ian

[daffy654]

I would send the demand as detailed by Ethel via snail mail and by recorded delivery (requiring a signature upon receipt).They can always delete an email and claim that they never received it,they can't do that with an actual letter that can be proven to have been delivered.

[Oneeyedvic]

Just wanted to say ignore the first answer - Lord Unstone has not got a clue what he is talking about.

Customs & Excise used to be classed as preferred creditors - but this was stopped with the Enterprise Act - they now get exactly the same as every other creditor.

If the company has gone into liquidation (which it probably hasn't yet), then you will get a certain amount of pence in the pound as will all the other creditors (eg 40p in the �1 - so if you are owed �1000 you will only get �400).


I agree with the sentiments expressed by Ethel and Daffy - send a letter recorded delivery.

[Lord Unstone]

might not be quite up to date on the customs and excise, but 26 years of running ny own business has proved to me that there is no legal mechanism to make them pay up, even if there are judgements against them. Believe me, don;t hold out much hope of getting any of your money. sorry.

[copthis1]

Update.

Having got a bit of a garbled message from their accountants, the company simply stopped trading and has already sold customer lists etc to another company.

Does that change anything? No official notice has been received by myself. The accountants dont seem to know their arses from their elbows and still claim not to know the current legal standing of the company other than they 'wound up' on 31/12/08.

Can a ltd company just decide to stop and sell up without clearing debt

[Nannyjillx2]

If they ceased trading on 31/12/08 it might be worth your while to buy for a credit report on the company someone like Experian may be able to supply up to date details do you know anyone who has access to a credit checking agency? that would be my first port of call.

I know from your first post you have put you have done work for them but does this involve any tangible goods as I've known people being able to get goods back from a company even if the receivers have gone in provided they can prove that the goods were actually theirs?

[copthis1]

No goods to grab back. I am a forklift instructor and I just provided some training on their behalf.
I haved sent the letter as advised above though.