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Hi,
I hope someone here can help. Before I start I do realise this situation is totally my fault. All I can say is that things got on top of me , I lost control and stuck my head in the sand.
I used to own a small business, in February 2013 I sold an item for £2700. Unknown to me it was faulty and a few days later it stopped working and the customer requested a refund. I did not have the money anymore and eventually picked up the item with a view to repairing it and returning it the the customer. A month later I found out that unfortunately the machinery was irreparable, eventually it was disposed of for a third of the value. The business was in trouble and with severe family illness at home, I did not get back to the customer. I closed down the business a few months later. I am not proud of the way I dealt with this. Unfortunately he was the least loud of all the creditors baying for their money.
I heard nothing until January 2014 when I received a letter from a representative of the client warning me that unless the full amount was paid in 14 days they would start legal proceedings. I contacted the representative and explained I was no longer trading, that I was now employed with a fixed income that I did not have the full amount but that I could pay in installments. I offered £250 a month. The representative came back a few days later and said that the client wanted it all now, not in installments. I then called the customer direct and offered to sign over another piece of machinery to him to take as full payment or to sign it over and sell it for him to pay back the money. I also sent this offer by email to him. I pointed out my debt to him represented 10% of my total business debts and that if he did not take the offer then when I sold it I would spilt the proceeds evenly between all my creditors. ( I still have it, it needs repairing, which I cannot afford) I did not hear directly from the client again. The representative emailed again to say that he believed the business was still running as there were signs that the premises were being used. (Another business had moved in) and that he would investigate my business further. All he had to do was go in there and ask and he would see that I was gone.
I heard nothing until 29th January 2015 when I received a money claim N1 form. I am desperate to sort out this mess and avoid a CCJ. I am working 2 jobs over 60 hour week just to keep my family rolling one month to the next due to the business debts that I have, I have been trying so hard to keep my credit clean while I rebuild my life. My outgoings are higher than my income and I have been advised by a debt charity that I should apply to the court to pay £1 a month as that is all I can afford.
A family member has offered to give me £100 a month to pay back the customer and avoid a CCJ. But now that I have received the money claim is there any way to stop it? I am thinking of contacting the customer again to offer this monthly payment, is that allowed? Isn't he supposed to at least try to look at alternatives to going to court, only leaving it as a last resort? A CCJ won't help either of us.
I hope that someone can advise me in any way.
I hope someone here can help. Before I start I do realise this situation is totally my fault. All I can say is that things got on top of me , I lost control and stuck my head in the sand.
I used to own a small business, in February 2013 I sold an item for £2700. Unknown to me it was faulty and a few days later it stopped working and the customer requested a refund. I did not have the money anymore and eventually picked up the item with a view to repairing it and returning it the the customer. A month later I found out that unfortunately the machinery was irreparable, eventually it was disposed of for a third of the value. The business was in trouble and with severe family illness at home, I did not get back to the customer. I closed down the business a few months later. I am not proud of the way I dealt with this. Unfortunately he was the least loud of all the creditors baying for their money.
I heard nothing until January 2014 when I received a letter from a representative of the client warning me that unless the full amount was paid in 14 days they would start legal proceedings. I contacted the representative and explained I was no longer trading, that I was now employed with a fixed income that I did not have the full amount but that I could pay in installments. I offered £250 a month. The representative came back a few days later and said that the client wanted it all now, not in installments. I then called the customer direct and offered to sign over another piece of machinery to him to take as full payment or to sign it over and sell it for him to pay back the money. I also sent this offer by email to him. I pointed out my debt to him represented 10% of my total business debts and that if he did not take the offer then when I sold it I would spilt the proceeds evenly between all my creditors. ( I still have it, it needs repairing, which I cannot afford) I did not hear directly from the client again. The representative emailed again to say that he believed the business was still running as there were signs that the premises were being used. (Another business had moved in) and that he would investigate my business further. All he had to do was go in there and ask and he would see that I was gone.
I heard nothing until 29th January 2015 when I received a money claim N1 form. I am desperate to sort out this mess and avoid a CCJ. I am working 2 jobs over 60 hour week just to keep my family rolling one month to the next due to the business debts that I have, I have been trying so hard to keep my credit clean while I rebuild my life. My outgoings are higher than my income and I have been advised by a debt charity that I should apply to the court to pay £1 a month as that is all I can afford.
A family member has offered to give me £100 a month to pay back the customer and avoid a CCJ. But now that I have received the money claim is there any way to stop it? I am thinking of contacting the customer again to offer this monthly payment, is that allowed? Isn't he supposed to at least try to look at alternatives to going to court, only leaving it as a last resort? A CCJ won't help either of us.
I hope that someone can advise me in any way.
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