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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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A Company that owes me £4060 has phoned me to inform us they

Customer Question

A Company that owes me £4060 has phoned me to inform us they are winding down the company. They have verbally offered a sum of £3000, followed by an email confirming the amount also:-
"Dear Rick
As discussed in the phone all The Hashtag Club has been wound down and I am in charge of sorting out the old debts that are still outstanding. The fund to do this is unfortunately not large enough to cover all the debts outstanding.
I can pay £3,000 today to clear this debt
Can you let me know if this is acceptable "
Should I take this, what options do I have etc and what do I need to reply to cover all basis (I don't even have proof they are winding down for example)
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 3 years ago.
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Personally I would take this money. If the company is being wound up then you should consider the following:
- If it is going into insolvent liquidation - you will have very little chance of getting your money back easily - you would have to make a claim with the liquidator and wait until the liquidator distributes the assets;
- If the company is no longer trading does it even have any income to pay you back;
- Does the company have any assets? If it does not then it wont have anything to pay its creditors form.
I would suggest that you write back and ask them to confirm whether the company is going into insolvent liquidation, I would also try and find out if the payment is in full and final settlement of what you are owed?
If the company goes into liquidation you will be barred from bringing any enforcement action against them.
The other alternative is that you write back and try and negotiate a bit more out of them?
I look forward to hearing from you.
Kind regards
Customer: replied 3 years ago.

We are in process of taking them to Money Claim Online regarding one of their invoices, with around 4 days waiting until it has passed it's deadline for payment.

We supplied physical goods, do we have any rights to remove these or ask for them to be returned?

My real concern is that they are actually still trading and usual the line to reduce the debt - Is there any way of finding out for sure that the company is being wound down.

Failing all of the above, what wording would be needed in replying when accepting the amount.

Expert:  Alex J. replied 3 years ago.
Thank you.
In response to your questions:
1. You can only remove the goods if you have a retention of title clause in your terms and conditions of trading that were served on them before the goods were supplied - if you do not have such a clause i would look into getting one drafted into your t and cs for future business;
2. To be sure they are winding down I would ask them to confirm how they are winding down? Are they going into liquidation or just ceasing trading - ask them to confirm in a writing a date by when it will happen?
3. I would say to them in writing that you will accept their offer of £3k save that "you reserve the right at any time to enforce the balance of the unpaid debt if at any point they continue trading the business after the of payment of the £3k".
As a a side point if you have issued proceedings already you will need to file a consent order with the court to show that a settlement of £3k is agreed - in this consent order you should include an agreement that says you are entitled to enter judgment automatically if they at any point began trading again or do not close down within 6 months?
I would note that if you just suspect this company insolvent I really would just take the money - if their assets do not meet their liabilities and they go insolvent then you will become an unsecured creditor and probably get very little.
Further you cannot claim costs in the small claims court so as a financial decision not to have to focus any more time and effort to it, £300 may be a worthwhile compromise.
I look forward to hearing from you.
Kind regards