New user

[Phlm]

Hi I'm new to the forum. I would like to post a query on client debts owed to me after selling a business. Can someone point me to the correct place to post please? Thank you in advance!

[ULA]

Phlm you can post on this thread and once we know more about your issue then we may move to a more appropriate area of the forum.

[Phlm]

I sold an accountancy practice in 2019 which belonged to my late wife. We had a business purchase agreement drawn up which had the following clauses.
"8.2 Notwithstanding that the Book Debts are Excluded Assets, the Buyer shall take reasonable steps to collect the Book Debts on the Seller's behalf, but shall not be bound to take any legal proceedings to recover the same. Subject to any express intention to the contrary on the part of any debtor, any money received by the Buyer in the course of collecting any Book Debts from a person who is also indebted to the Buyer shall be deemed to have been paid in or towards the discharge of the oldest debt first."
8.3 The Seller shall not seek to recover the Book Debts directly and shall not do anything to hinder their collection by the Buyer and, in particular, the Seller shall not assign any of the Book Debts to any third party. The Seller shall inform the Buyer of any payments that may be made to the Seller in respect thereof.”
There’s still over £20,000 outstanding. They paid over about £1000 in 2019 but nothing since and have ignored mails.
I’m sure they have been successfully billing the clients that have unpaid debts with me. They will have billed clients using their business name rather than keep the existing, if that muddies the water?
I want to know whether I can pursue them for the debts?

[atticus]

Have you sought requested details of the steps taken to attempt to collect the outstanding debts?

I cannot see that these clauses give you the right to sue the buyer, unless you can establish (1) that they have been paid money that should have been paid over to you under the 2nd part of clause 8(2) or (2) that they have not taken reasonable steps to attempt to collect. In the latter event you would have a claim for damages for breach of contract - and those damages are likely to be based on an assessment by the court of the chance in each case of being paid.

[Chapsman90]

Hi,

Any advice highly appreciated!

I was served x2 excel parking notices in Jan/Feb of 2020 which I appealed with excel then IAS but were rejected. I was told to pay £100 each. I made a monthly arrangement to pay a small amt due to my financial circumstance. I was told I would receive email on how to make payments.

However this was never sent to me until June 2020 when I received a demand notice letter of an additional £60 stating that I have failed to pay initial fine of £100 each. A final demand notice was sent in July of £160 each to be paid in full.

I emailed asking why they failed to provide me with payment details as initilly agreed, also reason it has been sent to debt collection agency. They replied confirming payment plan as agreed but failed to give reason for additional £60. No payment details given until June 2022 when I received a claim before action this time only for one notice.

I forwarded last email in 2020 and asked why they failed to reply to me. I received a very nasty reply from their dispute/resolution team stating all payments must be made in full. No arrangement plan would be accepted as I breached previous agreement and instalment period has now elapsed. No further explanation was given. I replied;

- Not able to make full payment of £160 each
- Would only set up the initial agreed monthly payment
- Disputed additional £60 fee and requested clarification

I received no reply and in July 2022, I received a letter from their Solicitors. I explained everything,equally needed to know why I should be paying additional £60 for no fault of mine, excel didnot provide me with payment details.

I have now received a county court form for just one notice despite reminding them of x2 notices. The amount is now £245
£160 notice
£50 representative fee
£35 court fee

Any advice would be very much appreciated as I am in a very difficult state financially due to current cost of living plus health issues and low income.

Many thanks

[Sam101]

CHAPSMAN90 ......................... you have started your question on another question.

You need to start again as a NEW question/subject and not join onto another as you wont get answers and delete this.

[ULA]

Hi Chapsman90 as Sam101 has said please can you create your own thread with your issue. Once I see that has been done then I will delete your post from this thread.

Many thanks