takeing monies

[baker123]

guarantor on brothers co. debts - they are paid already!!

just wondering if there is any one could advice on this ,

about 2 years ago my brother was running a companny ,he then put in to admin, and set up new co on advice given ,
the solicitors he was using pointed him to a insolvency companny to do this ,

at this point there was some unpaid invoices from old co, for legal invoices ,

when he set newco up my brother ask if i would be garontear on newco for new invoices for legal payments
i had no problems with this untill now ,

aparently my brother owes monies to them and they have taken me to court as being the garontear for none payment,
but on paper work i got 2 days ago shows that all payments he has made have been taken for old companny debts ,which whent into admin ,

if i am right they can not do this
if some one help on this i would be grateful


the bases of my case at present is i have bank statements given to me showing that all payments made were sent to client acount of newco to soliceters ,
in there docs there is no agreament that i can see that says they were given the ok to do this from me or my brother,

please advice would be grateful,

bake.

[Hurricane Puffrose]

Re: takeing monies

ok, so your being taken to court for not paying bills but you have proof of payments?

As far as im aware there is no case to answer if the bill is paid, but have they taken the money without consent?

[baker123]

Re: takeing monies

no monies are due, they took me to court 2 weeks ago for sumery jugement but that got dissmist as i ad gave a defence , that being they should not have took any monies out of the new client acount with the new companny name , they ad took payments for old companny , which then left no monies for new acount bills ,i am led to believe that what the have done is set them selves a presedent as a credetor , the juge did ask them have you got order of the court saying you can do this he got no reply to that , at this point he dissmist the case and told them it can go for triel

[Hurricane Puffrose]

Re: takeing monies

i think i will pm our resident retired policeman to have a read of this one. its a bit too big for me!

[bluebottle]

Re: takeing monies

Okay Baker,

When a company is dissolved, its debts die with it, unless the Insolvency Service (part of the Office of the Official Receiver) find that the directors are in breach of their fiduciary duty, or have failed to exercise due care and diligence, or have been grossly negligent, or have acted in breach of the law in any way, mainly, Company Law or Criminal Law. The role of the Insolvency Service is to investigate a company's demise and see if there is a case for seeking disqualification orders against the directors to prevent them setting up another company and doing the same again.

From what you say, your brother was not put on the list for an early crucifixion by the Insolvency Service. The solicitors involved in this matter are creditors of the company that is now dissolved. If there is no money from what is left of the dissolved company, basically, they have to write-off the money owing. In any case, they can claim this against tax as a bad debt write-off.

In this case, the solicitors took money from the new company and attempted to use it to settle a debt they were owed by the dissolved company. That is not only a breach of the Solicitors' Code of Conduct, it is serious professional misconduct on the part of the solicitors.

As for them dipping into a client account for their own benefit, given the circumstances, that may well amount to Theft. If it had sent the new company into administration, they would have serious questions to answer. Trying to claim from you may well amount to Fraud by False Misrepresentation.

The judge has dismissed their claim so they cannot go back for a second bite of the cherry. However, I am at a bit puzzled as to why the judge said it can go for trial.

In view of the actions of the solicitors, go to the Solicitors Regulation Authority's website at SRA | Protecting consumers, regulating solicitors | Solicitors Regulation Authority and download a complaint form. However, I just happen to have a PDF copy of said complaint form which I am attaching to this post. You need to report these solicitors.

BB

[labman]

Re: takeing monies

I'm assuming this was a case of Pre Pack Administration or Phoenixing?

If so, then you should not, to my understanding, be liable for any debts of the old company. There is not even any duty on the old company to tell its creditors it is undertaking this process.