Ltd company ccj

[Jzee81]

Hi,
I'm after a little advice..we had a ltd company that we had to close due to financial issues..the company had no assetts so was easier to close and go as sole trader, however I have been informed that the company has a CCJ for an unpaid invoice..I have received to my home address a letter from court baliffs to say they will be visiting my property..nothing in my home is related to the company. A position I have never been in and am worried baliffs will turn up at my home. Would really appreciate advice on what I would need to do or say if they do. Thank you for reading

[Amethyst]

The CCJ is against the company ? Have you got a copy of the judgment order / warrant of control issue letter that says it is a Judgment against the company ? rather than against you personally ?

You have a copy of the Companies House details to show the company was dissolved ?
Was the company registered at your home address ?
Was the judgment obtained before/after the company dissolved?
How much is the debt?

Best thing is to contact the bailiff company and inform them the company closed and when and they can go back to their client with that.

ploddertom

[Jzee81]

Hi Thank you for your reply..
Yes the company was closed before CCJ issued
Yes the judgement does state the company name
The company was registered to my home address and the amount was £1900
Wasn't sure if I should make contact but will call them tomorrow. Thank you for your reply.

[ploddertom]

I assume this is for a High Court Enforcement Company? Whetever happens do NOT allow them entry. Make sure your doors are locked even if putting back in a bin. Make sure for now there is nothing of value lying around outside and if you have vehicles then move them NOW. You should have been a given a date by which you need to respond to them - this should be on the Notice of Enforcement - have we reached that date yet because if so a visit will be imminent.

[R0b]

If the company had been wound up before the CCJ was given, then the creditor has absolutely no recourse and has wasted money paying for a bailiff to try and collect the debt. I would probably go as far as saying that the warrant itself is null and void insofar as you can't execute a warrant against a company that no longer exists.

The creditor should have actually taken steps to restore the company to the register then issued the warrant and then wound the company up afterwards. That process can be rather expensive and could potentially cost a chunk of what they are claiming. Have you checked Companies House recently to see if the company has been restored?

In addition to Ploddertom's advice, I would also suggest that you write to the bailiffs and explain to them that the company was dissolved prior to any CCJ made against the company. Therefore, the warrant issued is not enforceable on the premise that the company no longer exists and the creditor ought to have carried out his/her/its due diligence prior to enforcing the CCJ. As the warrant is likely to be unenforceable, I don't think they would have any right to attend your premises or enter your home and would be considered a trespass. I think you should also make this clear to them in your letter so that the bailiffs can't say they weren't put on notice.

Some bailiffs can be rather unscrupulous and might try to tell you that you are liable personally for the debt and pressure you to paying up any sum of money (which you should resist or your never likely to get that money back) or attempt to seize control of your goods. I think you need to stick to your guns but be prepared to have your paperwork to hand which shows the company as being dissolved. This could be as simple as printing off the Companies Houses sheet showing the company as dissolved and the date it dissolved.

What should happen here I think, is that the warrant should be returned as unpaid and the creditor advised that the company needs to be restored to the register before it can take any proper enforcement action.

[Jzee81]

Hi Thank you all for the advice...2 baliffs have just been and gone said that me as a director was liable and if I was going to pay, I refused to open the door, told them the company was closed and that it has no assetts. They have gone now but unsure what there next move will be? Thanks

[R0b]

You are not liable as a director, the company is liable. The only way you could be liable as a director is if the liquidator had brought a claim against you personally to be liable for as a result of failing to comply with your fiduciary duties as a director, but that still wouldn't mean that you are liable to the creditor who is an unsecured one I presume.

Although I suggested you write to the bailiff company, it would probably be easier to send the judgment creditor a letter explaining the situation and outlining that the company was dissolved prior to judgment being given. The legal effect of the dissolution of the company means that it no longer exists. There are no assets of the company and even if there were, any assets of a dissolved company would be transferred to the Crown known as bona vacantia. Overall, the Warrant of Control is effectively useless and you should suggest that the creditor recalls the warrant.

I think on the face of it, you have a right to state that neither the creditor nor the bailiffs have any lawful right to enter your land for the reasons already mentioned and if they continue to do so, then you can consider that to be a trespass. Equally, if the bailiffs somehow seized goods from your property, that is likely to amount to an unlawful interference with goods for which you may be able to hold the creditor instructing the bailiffs if not the bailiffs themselves (or their employer). That's why it's important to make sure you evidence and put them on notice about this so they can't say they weren't made aware.

The only real way to stop them from returning is to make an application to suspend or set aside the warrant on the basis that the company no longer exists and you can't enforce any right or action against something that is no longer alive.

So, next steps I think would be to draft up a letter for both creditor and bailiff (bailiff one can include copy of creditor letter and a short cover note). If you need any help or feedback on your letter post up a draft here and one of us will take a look. Remember, there's no need to be aggressive in your letter but no harm in being polite and assertive.

[Jzee81]

Thank you for your reply and advice..
checking on the company it says dormant and the accounts are nil. My home address was used with companies house but was purely for postal I have my mortgage details which state both our names no relation to the ltd company. My wife is worried sick that they will turn up when she's home alone and that they will force entry... I will start up a letter and post on here thanks for your help.

[Amethyst]

The Ltd company isn't actually dissolved or liquidated at all? just showing as Dormant/Non-trading and still registered at your home address ?

[Jzee81]

Yes a dormant account in which my accountant advised would be closed after 3 months by companies house so i assumed this the case.There is nothing relating to the ltd company, business account was closed over 12 months ago. I had to register to my home address as I have never had business premesis.

[Amethyst]

I might have a word with your accountant. If you're right and the status is just Dormant then your company is still live/open and hasn't been closed. It may be that you are actually liable to pay this Judgment order. Your accountant may have meant you have to not trade for 3 months before you could apply to have the company struck off/dissolved. If you apply to dissolve the company now it is likely the judgment holder may object. Your still trading but as a sole trader rather than a Ltd company, but doing the same thing, and you're still the director of the ltd company - so you possibily need to check the rules around that too. It's also likely that the CCJ against the company will be enforceable against you as Director as you may not have closed the company properly, had creditors outstanding and didn't notify them of the closure. You need to get this sorted out before the fees ramp up further and you have another visit from the HCEO.
Tagging R0b for a second opinion....

Some refs:
https://www.gov.uk/closing-a-limited-company
https://www.gov.uk/government/public...nd-restoration

[Jzee81]

Thanks Amethyst
The judgement nor letter posted through my door had my name on just the company, from previous replies on here and also a little research via the web I don't think I have any legal entity to the company although I may be wrong?? The company has zero assetts. I feel that if this was the case the baliffs wouldn't have just left. They asked me if I was paying the debt, I stated i don't owe any money the company does. Thanks again for the help and advice really appreciated

[Jzee81]

As for my situation now, I sub contract for a company. I have not had any financial gain from the ltd company as to which my filing history shows. Basically to give you a better insight, thought I would go it alone set up a ltd company quoted up one job, fitted the job the customer refused to pay the remaining balance so therefore I couldn't pay the supplier. Nothing shady just tried to better myself and got done but hey ho you live and learn customer got a brand new fitted kitchen and I got a £1,900 debt with baliffs at my home.

[ploddertom]

HCEO usually visits 3 or 4 times in total at different times of day. As they have a live Writ against what turns out to be a live company then they cannot be classed as a trespasser. You could if you so wish make an application to Stay the Writ but this will cost you £255 and think you may struggle to acheive this. Best bet may be to sit it out when they come and just deny them entry. As it is a residential property then they have no right of forced entry, make sure you keep your doors locked at all times.

[Sir Vere Brayne d'Emmidge]

HCEO usually visits 3 or 4 times in total at different times of day. As they have a live Writ against what turns out to be a live company then they cannot be classed as a trespasser. You could if you so wish make an application to Stay the Writ but this will cost you £255 and think you may struggle to acheive this. Best bet may be to sit it out when they come and just deny them entry. As it is a residential property then they have no right of forced entry, make sure you keep your doors locked at all times.

I am afraid that an HCEO can, without asking permission from the Court, to use a locksmith to gain access to the registered address of a Ltd Company, especially if it is the same address as one of the Directors.