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paying a company that's bankrupt

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ROCKNUT | 20:02 Tue 27th Feb 2007 | Law
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I got a plumber to put in my central heating 2years ago. He put it in but never finished it off. He went out of business. It was never sign off and i had to get somebody else to finish the job. i never payed him a penny as he never came back. that was 2years ago. He then appeared last week saying that the liquidators are looking for the cost of materials �1600. He expects me just to give the money to him! does anyone know where i stand legally? should i pay him as he might just keep the money for himself.
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Pay it to the liquidators, not him. If he is officially out of business he has no right to the money. He MAY do the right thing if you give it to him, but the odds are against it.
Question Author
cheers,

ive never received any letters from the liquidators so i dont even know if he has to pay them back or if all the money he was due has been written off.
DO NOT PAY!!!!! Let the liquidator sue you if that's what it comes to. The plumber was in breach of contract, therefore you used one of the remedies available for BOC, which is 'recission'. The plumber did not fulfill his contractual obligations so that entitles you not to meet your your obligations.

In any case, your being spun a line from a conman. If his company is in liquidation it's not his company you owe, but the liquidator.
The thing is because the plumber breached the contract, the liquidator has no more right to receive payment than the conman plumber does. Pay no one!!! Liquidator or the conman plumber!!!

Pay the liquidator???? Sheesh!!
Question Author
cheers stu dent,

i did'nt think i should give him anything. think he just trying it on. i'll just tell him i've no got the cash and take it from there!
Yep, seems like it's a 'try on'. Do as you suggest or tell him you'll discuss the issue with the liquidator, and only the liquidator. But pay no-one, because you owe no-one!!!
you hired him to do a job

he did not do the job.

you owe him nothing
Who do the materials belong to then? You haven't paid for them, so probably not you. He may not have paid for them, so maybe not him either. They may well still belong legally to the wholesaler who supplied the plumber. You owe nothing to them - that's the liquidator's problem. But if he - or the liquidator - paid for them - I can't see that they automatically become yours for nothing.

Agree don't just pay the liquidator - investigate further, get them to prove everything. If they don't give up seek legal advice.
Question Author
I know the manager of the plumb store where he got my materials from. They were not and have not been paid by him and he is due them and other plumb stores around the area where he had accounts with. The company he got mine from has �6,500 on his account unpaid!!
The plumbers materials have 'acceded' to Rocknut's home (Rocknut's property). The materials become part of Rocknut's home - so Rocknut owns it. The unpaid supplier of the pumbing materials joins the proabable list of creditors who are owed money by the plumber. So they have to approach the liquidator/trustee in bankruptcy/insolvency to stake their claim of the available assets.

Sorry if I sounded rude earlier Dzug - unintended! Honourable intentions.

Question Author
Ay up stu dent,
That sounds good for me! I know you've been busy today but did you get a chance to look up the other thing we were on about?
By the way i've woke up in stange places when i've been well smashed out my trolley but, Ho ho ho in never broke into somebodies car for a kip! Is that why your doing law?
ah the good old day's!
Always make sure about the plumber is that whether he is having proper knowledge or not and he is licensed or not.These are the main points for checking the plumbers.If he doesn't have sufficient knowledge then how could we expect the guaranteed service.Once the task is completed never let him go wait and check what he did and what changes or repairs he has done.

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