How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Joy Nicholas Your Own Question
Joy Nicholas
Joy Nicholas, Lawyer
Category: Law
Satisfied Customers: 943
Experience:  Lawyer
106220719
Type Your Law Question Here...
Joy Nicholas is online now

What happens to your company if you are the defendant and

Customer Question

What happens to your company if you are the defendant and lose a civil court case for £15k but your Ltd company has zero assets? Therefore the claimant has no chance of getting their money back?
Submitted: 11 days ago.
Category: Law
Expert:  Joy Nicholas replied 11 days ago.
Hi, thank you for your message. Can I confirm what was the claim for?
Customer: replied 11 days ago.
Hi Joy, it was a supplier who carried out professional work which the company was not satisfied with. Thanks
Expert:  Joy Nicholas replied 10 days ago.

Hi, thank you for your message. Then there will be no money to claim so they cannot recover the funds.

I hope this helps. - if you can please accept the answer there will be a box to do so and give me a 5 star rating (top right corner of your screen) and Just Answer will credit me for helping you today.

Customer: replied 10 days ago.
Hi Joy, thanks for your response. But how will this appear on companies house, will the company be forced to liquidate by the claimant (though there is nothing to liquidate), will the company get a judgement put against it or will the company be forced to close? Can you please clarify how it will appear on companies hour (if anything appears that is?)? Thanks
Expert:  Joy Nicholas replied 10 days ago.

HI, thank you for your message. You will need apply to liquidate the company at companies house. Creditors may try to stop the liquidation to review your companies circumstances. If no creditors apply to stop liquidation it goes through automatically as its a paper exercise. The company will show as liquidated. I hope this helps- I would appreciate if you can please accept my answer there will be a box to do so and give me a five star rating for answering your question today top right corner of your screen otherwise I receive no credit for helping you.

Customer: replied 10 days ago.
Yes but what I do this after the court case? I am trying to understand the actions of the claimant if they did win the case? Can they liquidate the company, force it to
Close etc what will happen? Thanks
Customer: replied 10 days ago.
*yes but do I do that now or after the court case?
Expert:  Joy Nicholas replied 10 days ago.

Hi, you will need to do so if you lose the case. If there are no assets you will need to liquidate the company. If they win the case creditors can come after you to ensure there are no assets as you have claimed. If you do not close it there will be an assumption that you have assets and thus creditors will come after you for the funds.

I hope this helps. I would appreciate if you can please accept my answer there will be a box to do so and give me a five star rating for answering your question today top right corner of your screen otherwise I receive no credit for helping you.