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JimLawyer
JimLawyer, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 11981
Experience:  Senior Associate Solicitor
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I am an unsecured creditor in a company that has been

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I am an unsecured creditor in a company that has been liquidation.The director clearly wrongfully traded and fraudulently traded.The liquidator has not succeded in getting any meaningfull information from the director.
JA: Was this discussed with a manager or HR? Or with a lawyer?
Customer: can i take a personal action against the director.
JA: Does the workplace operate with employees, freelancers, consultants, contractors or with unionised employees?
Customer: Has employees.I received a limited amount of information from manager
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 12 days ago.
Please carry on.What will the fee be?

Hi, this is Jim, thank you for the question - I will do my best to resolve this quickly for you.

Sorry to hear of the issue. Yes, a director is personally liable under the Companies Act 2006 if they trade the company knowing it to be insolvent (cannot pay its debts). Or if they were negligent or even fraudulent, and misled someone - so if they misled you without checking their facts, or they deliberately misled you, which induced you to pay them.

I would recommend that you send them a formal letter before action to demand payment within 14 days and say that if they do not pay you, you will issue county court proceedings against them. See attached template as an example of what to say. Please let me know if you cannot see the letter which I have uploaded. You will need to tailor this letter to your situation.

You will need to register at www.moneyclaim.gov.uk so that you are ready to issue the claim in the event they dispute the claim and do not pay you. The website is very user-friendly and you would not need a lawyer to use the money claim site. Claims with a value of under £10,000 are classed as a "small claim", so legal costs are not recoverable and the matter may be dealt with on paper by a Judge, not at a hearing. A hearing may be necessary if the court thinks that oral evidence is required to dispose of the case.

Claims between £10,000 and £25,000 are subject to fixed costs only so if you lose then the risk is minimal. Further, the money claim website allows you to sue for an amount up to £100,000.

You would claim the sum for the loss, the court issue fee (details of the money claim fees are listed here at page 5:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/904862/ex50-eng.pdf) and court interest which is 8% calculated on a daily rate from the date of loss to date of court judgment. The site allows you to calculate the interest and add it to the claim. If a hearing is required then there is a fee for this too - see page 7 of the previous link for details. Again, that fee is recoverable if you win.

If you are on a low income or have low savings (or in receipt of benefits), you can ask the court for a fee remission so you do not have to pay the court issue fee.

If you are eligible, let me know as you cannot use the online money claims site – you have to use the paper method, which is an N1 claim form sent to the County Court Money Claims Centre (I have a copy, let me know if you would like one).

If you win then once you have the CCJ from the court the defendant has 14 days to pay in full. If they do not then it gets registered with the credit agencies after 30 days. You can also enforce the CCJ with the county court bailiffs or transfer the debt to the High Court for a small additional fee assuming the total amount owed is at least £600 and you can use the high court enforcement officers who have greater powers than county court bailiffs. The transfer fee is added on to the debt and payable by the defendant.

There are other enforcement methods which I can help with, including bank account freeze, charging order on their property (and then apply to force a sale), apply to summons them to court for questioning, attachment of earnings order against their employer (if employed), apply to bankrupt them if they owe £5,000 or more - all of which can ensure you are actually repaid the money.

You may find they just pay you after receiving the letter before action – hopefully they will want to avoid litigation.

I hope this helps and answers the question which is easy to understand - please feel free to ask me anything else. I will reply as soon as I can to help with any further queries.

Thanks for using our services and have a good day,
Jim

JimLawyer, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 11981
Experience: Senior Associate Solicitor
JimLawyer and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 12 days ago.
I can sue the director if I have evidence of his fraud, even if the liquidator has chosen not to do this?

Yes, that is your right to do so - to sue the director. Fraud makes them personally liable so yes, my view is you should proceed

Customer: replied 12 days ago.
Is there a statute of limitations

Yes, 6 years from the date of your loss, to issue a claim in court against them.

Though the 6 years is either from your date of loss, or your date of knowledge (of the fraud).