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JimLawyer
JimLawyer, Solicitor
Category: Law
Satisfied Customers: 4959
Experience:  Senior Associate Solicitor
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I have money claim against me. my business gone in to

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Hi,
JA: Hello. How can I help?
Customer: I have money claim against me. my business gone in to liquidation and I as director signed directors guarantee. Is there any point to fight against the claim?
JA: Where are you? It matters because laws vary by location.
Customer: england
JA: What steps have you taken so far?
Customer: business debt line
JA: Anything else you want the lawyer to know before I connect you?
Customer: no

Hello, my name is ***** ***** I am a qualified lawyer happy to help you today.

It depends if the claim has any merit at all. The personal guarantee would as you will know make you personally liable (not the company).

How much is the claim for and could you give further details so I can understand the claim being made.

Customer: replied 7 days ago.
the claim is for 10900. I had two trailers on lease they been sold by the company and this is the shortfall .

OK, thanks. If they win, could you pay the sum owed (or do you have any equity in your property)?.

You could defend the claim and that would buy you time - although there is a possibility they may apply to strike out your defence as having no merit (no basis in which to defend) which would mean they win their claim before it gets to a hearing.

Where is the claim at now? I presume you have not filed a defence yet?

Customer: replied 7 days ago.
no I cant afford to pay anything I have 15 other creditors I am dealing with at the moment amounts ranging from 10k to 67k
Customer: replied 7 days ago.
just about to file it now but thought to check if there is any point defending it?

OK, if there is no way to pay them back - it would be up to them to try and enforce it. It would cost them more to try and enforce a CCJ. The CCJ would last for 6 years after which it comes off the credit register.

If there is something wrong with their claim and you dispute some or all of it then yes, you can defend it. That would mean the case will take several weeks if not months to be decided.

If you admit the claim then you can ask to pay in installments (form N245 is lodged later on). That's another option.

Customer: replied 7 days ago.
can you please explain what that means it would cost them more to enforce CCJ?
Customer: replied 7 days ago.
well this is what I have done on previous claim and court refused my offer of paying by instalments .

If they want to instruct baillifs to try collect the sum owed, or if they want to register a charge on your property, summons you to court for questioning over what you can and can't afford, apply to freeze your bank account - all of these cost them extra to do (especially if they are using a lawyer as they have to pay legal fees).

If the prospect of recovering the sum is low they may not enforce it as it's wasted money in their eyes.

The court can decide on the installments issue - I attach form N245 so if you do decide to admit the claim they will get judgment for the sum. After that you send in this form with a fee of £50 (payable to HMCTS) - the court will decide how you pay.

I hope this answers your question – if so could you please click 5 stars at the top of your screen, that will give me a rating on the site and I can answer any follow up questions at no extra charge.

Many thanks,

Jim

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