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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47343
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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We are a plumbing company who is owed money from a

Customer Question

Hi, we are a plumbing company who is owed money from a building contracting company , the money that is owed is around £35,000 we was sub contracted the job which we finished. company has not payed us for over 30day, not sure what to do?
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a qualified solicitor and it is my pleasure to assist you with your question today. Are they still trading?
Customer: replied 1 year ago.
Hi Ben, yes they are still trading
Expert:  Ben Jones replied 1 year ago.
You clearly have a claim here to pursue the company for the money owed and the question really is how to go about this. You have a couple of options – one is to go down the county court route and sue them for breach of contract, the other is to try and petition for the liquidation of the company. The latter can be somewhat risky because there is no guarantee that you will be paid. This is because trade creditors like you are only paid if there is money left over from insolvency fees and after debts to secured creditors, such as banks, have been settled. Also it can be quite a costly process. So the more realistic alternative is to try and pursue this via the traditional county court route where a claim is made against them and hopefully once you in you will have a court judgment against them. You would then either hope that the company satisfies that judgment by voluntarily paying, or you could try and take formal enforcement action to pursue the debt, such as bailiffs or similar. This is your basic legal position. I have more detailed advice for you in terms of the exact steps you need to follow next to start the court procedure, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, leaving a rating will not close the question and we can continue this discussion. Thank you
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Customer: replied 1 year ago.
If the company try to go in liquidation while i try and recover my debt will i lose my money ?They ow me around £34,000
Expert:  Ben Jones replied 1 year ago.
Many thanks. So whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps: 1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due. 2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action. 3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this. Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far. Hope this helps
Expert:  Ben Jones replied 1 year ago.
If they go into liquidation whilst you are trying to recover the money then you will still be a creditor of theirs and will just join the queue of creditors who will try and get a share of the company's assets, which will be distributed. Whether you get anything depends on how many creditors there are and what assets the company has. Also there are specific levels of creditors, with some getting paid in full first before they move on to the next level so if all the money/assets run out before your turn comes then you could end up with nothing
Customer: replied 1 year ago.
ok there is nothing i can do basically if they try to liquicdate
Expert:  Ben Jones replied 1 year ago.
only ensure that the insolvency practitioners are aware of the fact you are a creditor and it is then in their hands to distribute the assets in accordance with insolvency rules
Customer: replied 1 year ago.
how would i make them aware ?
Expert:  Ben Jones replied 1 year ago.
https://www.gov.uk/register-creditor-bankruptcy
Customer: replied 1 year ago.
when our payments stopped by the building firm we left site, we received contact by the investor wanting us back on site. we said we would come back to site only if they guarantee our payments to us them selfs.then we received this emailDear Alonso,I can confirm that upon completion of the works and upon handover of the gas certificates for Oakley Street and Powis Square you will receive payment (a minimum) of 90% of the value of any outstanding invoices.If you have any queries please let me know.See you tomorrowKateIf building company goes bust can we claim from the investment company ?they are a investment company and have a lot more money
Expert:  Ben Jones replied 1 year ago.
Hello, despite the fact that the original contract was between you and the building firm, you could try and use this correspondence to show that you had a formal promise by the investment company that you will be compensated for the work you did. It looks like they may have decided to take over these liabilities as a goodwill gesture because you had done the work to their benefit. What they may have done instead is refused to pay the building company for this work so they may not be worse off.
Customer: replied 1 year ago.
Right sounds good might have a chance there too, I need to know I sent my terms and conditions to the building firm with my quotation. I need to know with good supplied act could my terms and condition be applied and can I remove my materials form site. I have attached the file to this text. Thank you
Expert:  Ben Jones replied 1 year ago.
Yes you can apply this and collect your materials if you have access to the site. However, if they do not allow access then you cannot enter the premises as it would amount to trespass so you have to reconsider your options
Customer: replied 1 year ago.
Do i need a county court judgment for this or can i just start removing my materials, what if police is called to sit to remove me whilst i am removing my materials ?
Expert:  Ben Jones replied 1 year ago.
You do not need a judgement for this, as long as you have access to the property where they are kept. The police will only be there to prevent a breach of the peace s if this gets heated they can stop you from proceeding to prevent an escalation and then you may still have to go through the court