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Alex J.
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3840
Experience:  Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
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Im a web designer and host my clients ecommerce site. My

Customer Question

Im a web designer and host my clients ecommerce site.

My client has just gone bankrupt and owe me £20K for services rendered over the last year. Since trading and invoicing raised they have been a partnership and then in the last two weeks changed to a limited company.

I need to some advice / Or someone to pick this up for me and try and get my money owed.

Like I said Im owed £20K and am happy to offer a % on any money received. They do not own there house but have a car and plenty of office goods (computers and ipads etc)

Time is not on my side as they have just requested that I add this message to the website.

Mother’s Basement has been forced to cease trading as and from Monday February 3rd 2014 due to financial difficulties.
Trade creditors of Mother’s Basement will be contacted individually by February 17th 2014

They are now asking me to do some more work on blog site. From client:


I’m downloading all the info I may need from Magento tonight but can you please keep it accessible for a few days just in case I need to get more info.

With regards XXXXX XXXXX stock, we’re not allowed to sell it to anyone below market value leading up to closure as this looks like we’re offloading assets before going bankrupt. As it stands, Kate’s parents are legally allowed to seize all of the stock as they gave us start up money. Once that happens, they are legally allowed to sell the stock to anyone. I’m finding out tomorrow about how we can get you paid from that sale of stock but as it stands it’s unlikely you’ll be able to take the stock on and rebuild a new retail business in lieu of a debt. I also wouldn’t be able to commit much time (if any) as I have to start working full time to support the family. We’ll figure out how to pay this though

How can we migrate the Danger Room over to the Godaddy wordpress hosting package we have. We have some volunteers who will keep that going to generate review from sponsored articles and affiliate ads.


You help and advise would be gladly welcomed.

Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 4 years ago.

Thank you for your question and welcome.

My name is AJ and I will assist you.

Who did you address your invoice to? Was it to the limited company or the partnership?

When you agreed to provide the services were they provided to the partnership?

Kind regards

Customer: replied 4 years ago.
Hi AJ. Thank you for your assistance. we had no contract in place and therefore couldn't become first dabs on stock unlike the parents that lent them the money.
The company name is Mothers Basement. Yes they were agreed to invoice partnership. I just put up a closure notice now.
They are telling me there going into bankruptcy.
Expert:  Alex J. replied 4 years ago.

Thank you for your response.

If you invoiced the partnership then you will have to sue them for the money in their personal names.

If they have deliberately dissipated the partnership assets to avoid their creditors and as a result of your debt are made bankrupt any trustee in bankruptcy would be able to challenge these transaction under the Insolvency Act 1986 as a "preference".

They cannot just pay one creditor (even if it is the parent) as a preferred creditor unless that creditor is secured by way of a charge over assets.

You have to really ask yourself this question - is there actually any money there if you sued them?

If they are going to go bankrupt anyway then you should get them to acknowledge your debt and then place your debt in the bankruptcy pot and give the trustee in bankruptcy any evidence you have to show they have deliberately avoided their creditors.

I look forward to hearing from you.

Kind regards