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tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I am taking a company to court as I have paid them service

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I am taking a company to court as I have paid them for a service which I do not believe they have fulfilled in accordance to the contract.
The case is yet to be attributed to any court.
My concern is that the company owners have a history of setting up companies and then dissolving them leaving debts unpaid. Is there any means of asking the court to make the defendant aside so if they lose the case they still pay and I don't don't get left with nothing except legal bills?
Hello, thank you for your question. My name is ***** ***** I can assist with this.
There are various options available. All of them are quite complicated I'm afraid.
If, four example, you had reason to believe that the company was likely to dissipate its assets, with the intention of putting them beyond your reach as a creditor in a claim, then you could apply for a freezing injunction. That would then freeze all of the company's assets and they would remain there for you to enforce against in the event that you obtain judgment against it.
However, a freezing injunction can be an expensive route, and a complicated one to take without professional legal assistance.
The better option is usually to have the company's transactions reviewed by an insolvency practitioner in the event that it goes into liquidation. Insolvency practitioners, such as liquidators, have significant powers of investigation and to set aside previous transactions.
I appreciate you may have some follow-up questions, in which case, please do let me know. Otherwise, if this does answer your question, please remember to rate the answer for me.
Customer: replied 2 years ago.

Thank you

Looking at the defendants business their liabilities are greater than their assets - does that render a freezing order pointless?

When you say expensive are we typically talking £1k or £10k?



By expensive, I was suggesting something more in the region of £15,000 to £20,000+ VAT.
It doesn't render a freezing injunction useless, but ultimately, if everybody else is going to have a slice of the pie, and you get very little from it, then any court proceedings may be of a limited value.
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