[Richy L]

hi guys.
I did a job for a decorating company for £1,000. ...  its a limited company.

I have now been told that one half of the partnership has left due to money problems.
I have been told i will have to wait for payment, if i get get it, as the business is now in trouble and they are on the brink of going bust. so i have been told to wait until he sorts the business out, then i will get my money.

the main problem is, i dont have anything in writing, as he asked me to do the job straight away, and they are based a couple of hundred miles away from me.

Any advice?

[ace jetwash]

get to your accountant and solicitor straight away, thats the best advice i can give.

[steve doyle]

I think you need proper advice on this one,

It may be that there is ramifications of not doing the right thing, eg, it might be that lodging small claims or forclosure papers(?) against the business will put you ahead in the creditor list, not doing something correctly might put you last on the list!

take proper paid advice (its an investment!)

[martin19842]

hi there

the problem is if they are realy in trouble, and you issue court papers against them then , you are throwing good money after bad in all reality.

if they are not in trouble and they are making you wait, then a chase letter might be worth it.

just make sure that if yo do go don the court route, that you serve the papers to the registered office.

if you chade letter then state Late Payments Act and your intention to charge statutory interest.

regards

martin

[Richy L]

but if i have nothing in writing, couldnt they just say they dont know anything about the money or me?

[martin19842]

hi there

a verbal contract in law, still has teeth.

obviously a written contract, or purchase order numbers protects everyone.

we have introduced works munbers this year for every job, new terms and conditions, etc.

at the end of the day if they go broke none of that really counts.

the other thing we do is photos of work, esp on the larger contracts.  they are good.

regards

martin

[Richy L]

well ill give it another week, he said to leave it two weeks, so ill ring him at the end of this week and see where i stand.

[steve doyle]

I would still get advice,

we recently had karl on here who lost 3k because someone went bump, i am sure had he know they were in trouble he might of found a way to get himself paid (or at least try).

Personally if i could lodge a claim for my money which sent them under but meant i would get my money then thats what i would do. Its of no benefit to sit around and let someone else do it and right off your own £1000,

burying your head in the sand for a week is not taking a proactive approach, i think its better to do somthing and be in control of the situation than let others be in control.

I will only repeat that you need proper legal advice, no one on this site is going to give you £1000 if their advice is wrong! and £1000 is alot to pay for unqualifed, incorrect legal advice!

[martin19842]

hi there

the problem is, that if your action is enough to take them under then you can almost guarantee you wont see any money

the bank will be in first with anf guarantee on borrowing.

and then the HMRC are preferential creditors,

trade creditors get in behind that.

one thing you might like to do is to do a company search, and see if they have any upto date info, directors etc.

regards

martin

[poleman]

Send this, it has worked for me

ACT NOW TO STOP COURT PROCEEDINGS

Over due payment of Invoices!     

Dear Mrs. ****

We have written to you and also phoned, with out any luck 

We are very concerned because your account with us is over due by £133.95!

Unpaid Invoices are detailed below

Invoice numbers 2131, 2244, & 2311

All invoices that we send out are due for payment with-in 30 days of invoice date under late payment of commercial debts Act 1998

Please send your payment in full to reach us with-in 7 days of this letter in order to avoid court proceedings or we will without reference to you, issue a county court claim. 



Yours Sincerely




Andrew Cheney
MD of Smart Cleaning Ltd
   

If no relpy I get this company to send a letter out (cost 2 or 3 pounds) http://www.thomashiggins.com/

[DREAM CLEAN]

Hi,

If it's really looking glum, try and find other one of their contractors/suppliers and ask them if they've had problems.
Maybe your client lost money on that job and maybe they are thinking if they knock the cleaners they'll gain 1k on the bottom line , it does happen in the building industry.
If it's looking like they are going bust  there is no point in using  the legal system as the only thing you'll get in the end is a letter from the liquidators.
Have you thought of meeting the director expalin that this could also put you under and maybe do a deal ( just the cost of the job)
maybe all of the above is rubbish but just a bit more for your thinking pot.

Nick

[Cleaning Resource]

Don`t suppose you need or know anyone who needs a grands worth of decorating done, you could try and sort it that way.

Failing that I would do as the above post says and offer to lower the debt if it is cleared immediately.

Failing that go and knock the geezer out for taking the p, it may make you feel better  , I doubt it would get you your money though   

[rob fryer]

if there going bust go there with a couple of big mates remove goods to the value
i no its not the best thing to do but would you let someone steel 1000 pounds from you and do nothing!!!
   good look

[Richy L]

cheers for all your help guys.
Im going to give him a ring tomorrow morning, and ill see where to go from what he says.

ill keep you posted!

[garyj]

Don't bother phoning, you'll get fobbed off again.

Go around there and be as nonthreatening as possible, but be firm. This guy is waiting for the inevitable to happen, and once he goes bust you'll NEVER see the money.

Ask him what he suggests for payment, explain you're a very small company and this is having a serious impact on your business. His money problems and his partner leaving aren't YOUR problems. If there are other staff there then that indicates he has the money to pay them!! Does he have a car? Then he has money for fuel.

When was the work done by you? How late is the payment?

Court action takes too long, I've been in this situation, on one occasion I sat in reception until I was paid, took about half an hour.
Don't get fobbed off with excuses, try and get a cheque out of him then take it straight to the bank.


 

[Richy L]

i did the job about 7-8 weeks ago. i was told i would be paid in 10 - 14 days!

the live about 150 miles away from me, its not like i can pop over. and ill have to find their address anyway, i havent got it.

[steve doyle]

150 miles north or south of cardiff?

[Richy L]

east...
well its in devon, or near.its about 125 miles actually.

[steve doyle]

sorry, devons the wrong direction for me.

[Richy L]

thanks anyway mate