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Ben Jones
Ben Jones, UK Lawyer
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Is it worth trying to sue a company in administration. We completed

Resolved Question:

Is it worth trying to sue a company in administration. We completed some works for them on a Friday & they went into administration the following working day which was the Tuesday after Easter. We are a flooring contractor & they would have needed the carpet tiles laid to get practical completion on the project. I believe that they must have known what they were up to so as directors would they be liable or is this practice allowed under English Law.
Submitted: 3 years ago.
Category: Law
Expert:  Ben Jones replied 3 years ago.

Ben Jones :

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Customer:

Ben, Where do i find you answer to my question

Ben Jones :

Generally, when a company y is in administration, any legal proceedings against them are prohibited and placed on hold whilst the administration process is carried out. There are options to get permission from the courts to be allowed to sue them but this can be rare and you need a pretty good case to do so, it can also be expensive.


 


You are highly unlikely to be able to sue the directors personally. Assuming this was a limited company, it will bear its own responsibilities for any debts it incurs, the directors will not be liable, hence the limited liability it operates under. It is extremely rare for the courts to allow directors of Ltd companies to be used personally, we are only talking in serious cases of fraud, but in the circumstances this is unlikely to apply.


 


So your best option is to register the debt with the administrators and hope that there are sufficient assets to cover at least some of your debts.

Ben Jones, UK Lawyer
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Experience: Qualified Solicitor - Please start your question with 'For Ben Jones'
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