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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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Part 36 offer. I (ltd company) have agreed to a P36 offer

Customer Question

Part 36 offer.
I (ltd company) have agreed to a P36 offer but cannot pay the sum, I am able to pay it over 2 years bit by bit per month and can prove this as things are difficult at the moment, will this be accepted or can they go forward and try to wind up the company?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.

Alex Watts :

Was the offer made by you or the other side please?

Customer:

10500

Alex Watts :

Yes but was the offer made by you or the other side? Are you Defendant please?

Customer:

defendant, offer made and accepted by me

Customer:

made by me sorry

Customer:

it was ok at the time then a CT bill came through, so its made the payment to the claimant impossible

Alex Watts :

Hold on - you are the Defendant?

Customer:

yup

Alex Watts :

Ok - the offer was made by you to Claimant?

Customer:

yup

Alex Watts :

You made the offer and the Claimant accepted it - have I understood?

Customer:

yes

Alex Watts :

Under Rule 36.11 any offer must be paid in full within 14 days.

Customer:

yes it says that in the offer agreement

Alex Watts :

If you intended to make payment by installments then you should have made a Defendant Calderbank Offer.

Customer:

thats not my question tho!

Alex Watts :

ok

Customer:

i didnt intend to, but at the time the p36 was made all was ok

Alex Watts :

ok

Customer:

but the CT bill has thrown it all off

Alex Watts :

ok - so you can't make the installments?

Customer:

there hasnt been any instalment agreement and they wont agree (theyve made this very personal)

Alex Watts :

Ok - just so I understand.

Customer:

i just know they wont, so what happens when we dont pay the p36

Alex Watts :

You made a Part 36 offer, this was accpted?

Alex Watts :

It did not include provision for payment by installments?

Customer:

no, I made a P36 = refused. They replied with a p36 = I accepted. Now I cant pay it, it was to be paid in full

Customer:

I CAN pay by installments but I know they wont accept it

Customer:

so will it go before a judge

Alex Watts :

I see. In that case you accepted their part 36 offer then they can go ahead with proceedings

Alex Watts :

You can't stop it in that case.

Alex Watts :

Only if there is:

Alex Watts :

1) Settlement

Alex Watts :

2) Part 36 offer accepted

Alex Watts :

3) Tomlin Order

Alex Watts :

can the matter be stopped, otherwise the matter will go ahead.
S

Alex Watts :

Sadly you or the Court can not force them to accept installments

Customer:

yeah. what I mean is, before they get to wind up petition stage, will it go to court where I can explain this to the judge

Alex Watts :

This is what will happen@

Alex Watts :

1) They will issue a statutory demand

Alex Watts :

2) You have a limited time to set this aside, but you need a good reason

Alex Watts :

3) If it is not set aside then they can issue with a bankruptcy petition

Customer:

its a company btw limited by guarantee with £1 liability

Alex Watts :

4) The matter will be listed in Court and a Judge will want to know if the demand was properly served and if the debt is owing, if it is then a Judge will make the order/

Alex Watts :

This makes no difference - a Judge will want to be satisfied the procedure has been followed that is all

Alex Watts :

I realise this is not the answer you want and certainly not the one I want to give, but I have a duty to be honest

Customer:

at the point of the order, is this when baliffs enter

Alex Watts :

Once the Order has been made the assets are transferred to the Official Receiver who can instruct bailiffs.

Alex Watts :

It may not be straight away but then as soon as the Order is made, you no longer own or control the Company

Customer:

I see. Ok, thanks.

Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience: Solicitor with 5+ years experience
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 3 years ago.
Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.
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