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JimLawyer, Solicitor
Category: Law
Satisfied Customers: 12071
Experience:  Senior Associate Solicitor
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I am a director of a company and had a civil claim go

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I am a director of a company and had a civil claim go against the company. The company has no money how do I go about paying money at a later date when the company starts earning again
JA: Have you discussed this with a manager or HR? Or with a lawyer?
Customer: No
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: I'm am the sole director
JA: Anything else you want the Lawyer to know before I connect you?
Customer: The company is a limited company

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. The court judgment (if they win) is live for up to 6 years, so it makes sense for them to enforce once they know your company is trading again. If £750 or more is owed they could apply to wind up the company but for that to be worthwhile the company needs cash or assets to pay. Your best option is to tell the claimant the limited company has no money to satisfy a judgment, so to wait. They shouldn't take any action for as long as the company is not trading.

If they do sue, you will receive court documents (a response pack) which you must complete and return to the court. It is a tick box exercise for the most part and there is a short section to write a defence which is easy enough though please feel free to come back to this site if you need any more help. A claim will also take 6-12 months to be decided at court. If you lost then your company would get 14 days to pay the judgment before the claimant can enforce the order, and 30 days to pay in full before it is registered with credit agencies. The claimant cannot recover legal costs if they win, in a claim under £10K (a small claim), all they can claim are the court fees and interest.
I can assist you going forwards if it gets to the point they issue a claim.

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,

Customer: replied 22 days ago.
if I ask the claimant to wait till next year to pay the rest of the money, that may be acceptable. If she refuses then can they take my personal income into account.?

Hi there, no, you wouldn't be in the picture as it's the limited company she would be suing. So your personal income is not touched. If you tell her that the company will be up and running next year and to hold off any court proceedings. She wouldn't be successful recovering any money and any lawyer would tell her that it'd be a waste of time at this stage.

Customer: replied 22 days ago.
OK I'll do that. Thanks for your help.

My pleasure, please come back again if you need further help.
Have a good day.

JimLawyer and 4 other Law Specialists are ready to help you
Customer: replied 22 days ago.
I will do. Thank you