How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Alex J. Your Own Question

Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3612
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

Hi Jo My previous company has had to stop trading due to

Customer Question

Hi Jo

My previous company has had to stop trading due to a debtor owing £ 150,000 approx over a number of contracts and refusing to pay. I have taken out 2 adjudication so against debtor and both were successful but debtor refuses to pay so now going through courts trying to get payment

Debtor took a separate adjudication out against my company and lost so now 3 adjudication a in my favour

I have advised all creditors , total £ 100,000 approx of the situation and so far they all seem to be awaiting court results before taking any winding up action

Today I have received a letter from one creditor saying it has been brought to their attention that my company is still trading and has changed trading address and registered office. They accuse me of misleading them and have given 7 days to make payment or they will commence winding up order

This information is totally incorrect

What has happened is my father set up a totally new company and I am an employee. My father had nothing to do with previous company apart from lending money to try and keep trading which he has now lost

I know, with written evidence, that the debtor has advised my creditors of this mis-information. I believe he hopes someone will force wind up of company and so save him having to pay old company

As well as being totally incorrect this now severely damages my reputation as an honest person within the industry and I would like to know if I can take action against debtor and claim damages for libel
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

Thanks for your interest in me but this isn't really my area.

I will pass this onto somebody who can help but I don't think he is on right now. I'm sure he will be along tomorrow if thats OK?
Customer: replied 3 years ago.
Ok thanks
Will I get an email to know he is online ?
Expert:  Jo C. replied 3 years ago.
Yes, you don't need to sit online. You will get an email when he responds.
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome.

My name is XXXXX XXXXX my colleague has asked me to assist you.

Is the name of the company your father started the same as or similar to the name of your company?

Are you a director of the old company?

Kind regards

AJ

Customer: replied 3 years ago.
No name is XXXXX XXXXX and I am only an employee of the company
Yes I was a director of the old company
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

You may well have a claim for defamation and slander, the only issue is the other party presumably owes you money and costs under three judgments.

If you commence defamation proceedings against them (even for an injunction) they will doubtless waste time and money that should be spent repaying you. It would really just be a case of throwing good money after bad.

I would suggest you write to the creditor that is putting pressure on you and explain what has happened.

You can then send the debtor that owes you money a cease desist letter. I would not recommend starting proceedings as this will detract from you getting paid.

Does the debtor company have any assets with which to pay you?

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

Thanks for advice


 


Debtor certainly has money, enough to settle exisiting cases if we are succesful.


 


There are many other cases I need to take out but need funds in the old company first to enable to pay for further action as cases become more and more complex.


 


Unfortunately just spoke with creditor and he will not budge now, wants his account settled in full within next 7 days or will take up a winding up order against company. Told him company has no money but now he does not care, just wants company closed.


 


We will contest winding up order as we are currently in cases trying to obtain monies only for the benefit of creditors.


 


If we fail in our efforts to contest winding up order how long does it normally take from winding up order being issued to the company actually being closed ?

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Firstly they would have to serve a statutory demand which takes at least 21 days.

Secondly they would have to issue the petition and advertise it. Then they will need a return date to make it final. This could take another two months.

I would say at most 2 and a half months to the liquidator being appointed.

How much do you owe this company?

Kind regards

AJ
Customer: replied 3 years ago.
£ 16.000
Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

The only way you will be able to contest the winding up petition is if you can prove you have the means to repay the debt.

Have you given the debtor details of the judgments you are due and owed?

Kind regards

AJ
Customer: replied 3 years ago.
We do not have judgements yet. Still awaiting final hearing dates, the whole process seems to take forever.
We have three Adjudications in our favour and hope the judgements will support these Adjudications
We have told creditor this and offered to send Adjudications but he is not interested

I thought it cost quite a sum of money for the creditor to wind up a company?

I find the action surprising considering we are doing our best to try and get money from debtor

If we are put in to liquidation will that mean debtor will get away without paying any money?
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

The cost of a winding up petition will be at least £2500. So they do have to be certain of some success to make it worthwhile. Otherwise it is just good money after bad.

The debtor wont get away with paying the money, if anything it will put more pressure them as they will have a liquidator breathing down their neck.

Kind regards

AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3612
Experience: Solicitors 2 years plus PQE
Alex J. and other Law Specialists are ready to help you
Customer: replied 3 years ago.
Hi Alex
I propose to contest winding up order as I really want to pursue crestmount, my debtor

I do not understand the benefit to creditor of winding company up. He knows we have no funds, it will cost his company £ 2,500 - which may be wasted.
If he is successful in winding up does he get any benefit above other creditors?
Would you please let me know what is benefit to creditor taking this action
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Unless he is a secured creditor, the only benefit he will get is the right to appoint the liquidator.

Otherwise he will rank equally with the other unsecured creditors.

Kind regards

AJ

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.co.uk/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.co.uk/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.co.uk/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.co.uk/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.co.uk/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.co.uk/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice