Business Debt from 2010

[Daley0]

Hi There,

I am owed a total of £7410.00 for a job dating back to 2010. Depsite numerous requests and promises I have yet to see this money. The Company is still trading and I have been keeping a close eye on their credit score which between July 2011 and Jan 2012 was showing as a Very High Risk Company. However since Feb 2012 it has jumped up to a Below Average risk with a hugely improved credit score. I am aware that the Company is aiming to stage a big event in the Summer and rumours were abound that should this event prove succesful and they make money we would finally be paid. However the last event staged ( in 2010 of which we havent been paid, wasnt succesful and lost money hence the non payment to us) . We have been very patient despite this putting us in a very difficult financial position, but I am thinking now may be as good a time as any to finally send a solicitors letter threatening Court Action and try and finally get this money out of them rather than wait for the next event to potentially fail and the business be wound up and never see our money at all ? . Any advise would be greatly appreciated.

Thankyou.

[CleverClogs]

Re: Business Debt from 2010

Wouldn't a Statutory Demand be more appropriate?

[Lord_Alcohol]

Re: Business Debt from 2010

To be honest, and as you've already made repeated requests for payment, I would serve a claim immediately. MCOL is the easiest and I can't see any reason why a business can't use this service.

Having spent 20 years in the UK business arena I am well aware that many businesses are operated by individuals who will only pay when there is no alternative.

As this would be small claims, there would be no costs to pay the other side should you lose.

https://www.moneyclaim.gov.uk/web/mcol/welcome

An SD is also an option (as CleverClogs has said) and may work (they usually do) - the only snag I think would be if the firm still didn't pay at which point you would be seeking to have that business wound-up (as opposed to bankrupting an individual). However, I have no idea how to go about doing that should the SD be ignored but suspect it is quite involved and may result in costs for you.

A claim, on the other hand, might be more straightforward.

HTH
LA

[Sapphire]

Re: Business Debt from 2010

I wouldn't have waited this long, our customers get 14 days over the due date, then its a Final Demand, if no monies within 7 days then I'm straight onto MCOL.

[Guest]

Re: Business Debt from 2010

As this would be small claims, there would be no costs to pay the other side should you lose.

HTH
LA

Hi LA

Has the limit for small claims altered, it used to be £5K.

Peter

[Lord_Alcohol]

Re: Business Debt from 2010

Oops, just realised I missed the decimal point in Daley's post - £7410 not £741 - so would this be OK in MCOL as it wouldn't go the small claims track?

Maybe an SD is best?

LA
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Hi LA

Has the limit for small claims altered, it used to be £5K.

Peter

My bad

[CleverClogs]

Re: Business Debt from 2010

Hi LA

Has the limit for small claims altered, it used to be £5K.

It hasn't. (link)

[Guest]

Re: Business Debt from 2010

Hi

I think i would still go the county court route. Forcing a company into bancruptcy should be a lst resort in my view. Apart from being expensive, you do not know what other debts the company have and how far down the list you will come.

Peter

[Daley0]

Re: Business Debt from 2010

I somehow missed all of your replies to my post back in 2012, not sure how that happened. Just wanted to thankyou all for your responses. We were lucky in that a Barrister friend agreed to get involved and the Company in question finally paid up in October 2012 without the need to take it to court. A few very well written letters from her did the trick.

Thankyou all for your advise.