CCJ Query

[ajarstar]

Hi all.

I had a CCJ awarded against what I think was a sole trader (e.g. Company Name) on the 29/09/2012. When the CCJ was awarded it was answered by the owner of the business himself and his affordability included his own personal bills and not the business'. I am looking to upgrade this to a High Court Writ of Fi Fa to allow me to recover the money however when I googled the company name it seems the owner has incorporated the business under the name Company Name Ltd and this company is now going into receivership.

The company was incorporated on 03/10/2012, 4 days after my CCJ was awarded. Am I correct in thinking this would mean that the CCJ was awarded against the person (as a sole trader) and so if I upgraded it to a Writ of Fi Fa they would enforce that against the individual?

Thanks for your help.

[MissFM]

Re: CCJ Query

Hello Ajarstar and welcome to Legal Beagles

I don't believe that an individual can transfer personal legal or financial liabilites to a limited company. If the CCJ were awarded against the individual then it is against that individual whether the Ltd Co were created before or after the event.

A more adept member will no doubt be along to elucidate!

[ploddertom]

Re: CCJ Query

You are best off speaking to a HCEO who should give you a more definitive answer or have a look @ http://thesheriffsoffice.com/faqs/ca...ing-a-judgment

[enquirer]

Re: CCJ Query

Whilst the company can agree to take accept liability for the debts and assets of the sole trader, it's messy. It's also dangerous, as the court can simply say that it considers the transfer to be fraudulent and then transfer the assets back again.

You will however need to move fast.

As Plodderton suggests, consult the HCEO's office. You might also find Companies House and HMRC interested to discover what's going on. Both can block the liquidation.

[MissFM]

Re: CCJ Query

I am 99% certain that, if the CCJ was awarded against the individual as a sole trader (however named) and the Ltd Company incorporated afterwards, the liability is with the sole trader. I say 99% because Company Law is notoriously geared to protect the dishonest and there may be a loophole (others on here may know).

However, Ploddertom's advice (as always) throws a whole new light.

Company law is a minefield.

[MissFM]

Re: CCJ Query

Crossed with Enquirer - more good counsel

[ploddertom]

Re: CCJ Query

Enforcement can only continue against the correct entity thus my suggestion for talking to someone who knows. There is nothing worse than forging ahead only to stalled because the wrong entity has been named on the Writ.

[MissFM]

Re: CCJ Query

Who does it say on the paperwork? (Without posting identifiable names) - ie is it an individual or a company name? If it's a company name you need to make it very clear to the court that it's not the same entity as the Ltd Co set up afterwards, even if the name appears similar.

[smileyculture]

Re: CCJ Query

The debt is against the sole trader, go after him. Forget the ltd company, its a red herring. Go after your money, your in the driving seat.

[wales01man]

Re: CCJ Query

When the CCJ was granted the LTD company did not exist?
you cant claim against something that don't exist if the person who was named on the CCJ is a company director it matters not he is personally liable
HCEO should go after him even the thickest bailiff would not try to enforce anything against a company forned after the judgement date------- or would they?????