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Jenny
Jenny, Solicitor
Category: Law
Satisfied Customers: 6339
Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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I changed from a sole trader to a Ltd company 16months ago-since

Customer Question

I changed from a sole trader to a Ltd company 16months ago-since then I've got into difficulty and owe a supplier 10k.My details never got changed over from sole to ltd-although every payment they've received in the last 16mths has been from the Ltd company.Can they register judgement against me as the sole trader even though I'm not,and the amount in question has been in the Ltd company timespan?
Submitted: 1 year ago.
Category: Law
Expert:  Jenny replied 1 year ago.
Hello my name is ***** ***** I am happy to help you today. Have you got a written contract with the supplier?
Customer: replied 1 year ago.
I would of filled in an application form to get the account originaly-I mentioned it in branch on a couple of occasions and was told that they would sort it out but it never has been.When I called the supplier this morning they said I should of filled in new paperwork-if someone had told me that in branch then I would of done,there is no advantage to me not to of done.I sent back the court admission form as the Ltd company with an offer,they've accepted the offer but as the sole trader so therefore the CCJ would be against me not the Ltd co-I haven't 'admitted ' as the sole trader
Expert:  Jenny replied 1 year ago.
If they have accepted an offer to settle why are you concerned about a CCJ?
Customer: replied 1 year ago.
Because I'll be paying them off in installments and they will' be obtaining a CCJ to secure the debt'.
Expert:  Jenny replied 1 year ago.
Ok thanks understood. It is a slightly tricky situation because legally if you entered into the agreement with them as an individual not as a limited, the contract is between you as an individual not as a limited. The court on assessing the parties to the action will look at the paperwork (forms) to see who are the parties to the agreement. If you (as an individual) rather than you as a ltd are on the forms then the supplier are right that contractually you are the party to sue rather than your limited. If they were to take action against your limited it would fail as it is not a party to the contract. The fact that this has been an error on your part for not filling in the forms and the fact that the limited has paid the money due under the contract does not really alter this position at law I am afraid. The supplier will be reluctant to issue any proceedings against the limited in this situation as you could then defend the claim on the basis that there was no contract in place. I am sorry that this is not the answer that you wanted but unless the supplier will agree that the debt be transferred to the ltd I do not think there is any way of avoiding a personal CCJ in these circumstances. Please do let me know if there is anything further you would like to know? If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
Expert:  Jenny replied 1 year ago.
Hello do you have any further questions about this?
Expert:  Jenny replied 1 year ago.
Hi if I have answered your question and you have no further questions I would be grateful if you would kindly remember to rate my answer before leaving the site as I am not otherwise paid for the time I have spent working on your question today. Thank you and all the best with this.