Dissolved company owes me money

Jrterror · 26 May 2017 at 8:14AM

Hi.
Quick history. Back in 2016 I completed a Reroof for a company.
Finished job to their satisfaction. Then was told they couldn't pay me
I have been very patient, believing he would eventually honour his debt.
We have kept contact up until Oct 2016, then all went quiet.
Just discovered the company was dissolved early this year. I was not informed

Should I have been contacted, since he owes me?
Have I missed the chance to retrieve my money?
Thanks.

Mouse007 · 26 May 2017 at 9:07AM

Unfortunately yes. Once dissolved the company is dead and no action can be taken against it unless it is restored to the Registrar of Companies by Court Order (expensive). Even then it is highly unlikely that there will be any assets available to pay your claim let alone recover costs.

jrterror_2 · 26 May 2017 at 11:27PM

Thanks for the reply.
Should I have been contacted before the company was dissolved?
I am after all one of the people the company owes money.

As a director of the company is he still not responsible for debts owed?
Could I take him to small courts?
Ta.

jonesMUFCforever · 26 May 2017 at 11:39PM

No, to me you have lost your money unless you got one of the director to sign a guarantee that you would be paid if the company did not.

Dissolution of companies is normally listed in the London Gazette - this is all they have to do legally.

Chapuys · 27 May 2017 at 7:39AM

jrterror wrote: »

Thanks for the reply.
Should I have been contacted before the company was dissolved?
I am after all one of the people the company owes money.

As a director of the company is he still not responsible for debts owed?
Could I take him to small courts?
Ta.

Without going into too much detail think of the company as a person. You cannot put the debt on another person unless it was guaranteed to them. It was that companies debt, not the directors. Also, by publishing in The (London) Gazette, they are informing anyone who owes them a debt of their intention to dissolve. You happen not to read it.

You should have pursued it when they didn't pay the invoice within 28 days, especially when they said they couldn't pay you. At least you could have tried to claim assets back before they were dissolved (by themselves or the courts). You seemed to be genuinely being supportive of the company (which is nice) but in the end you should have thought business is business. You did a job and they didn't pay you. You should have started to pursue them in the small claims court then. I'm sorry to say that you will have to write it off as a loss now.

Vectis · 27 May 2017 at 8:22AM

Jrterror wrote: »

Hi.
Quick history. Back in 2016 I completed a Reroof for a company.
Finished job to their satisfaction. Then was told they couldn't pay me
I have been very patient, believing he would eventually honour his debt.
We have kept contact up until Oct 2016, then all went quiet.
Just discovered the company was dissolved early this year. I was not informed

Should I have been contacted, since he owes me?
Have I missed the chance to retrieve my money?
Thanks.

So, how long have you been waiting for payment? I'd guess about a year?

What on earth were you doing all that time? Did you have payment terms on your invoice or in an agreement? Why didn't you do a MCOL?

Well, it's all academic now that the company is gone. You need to learn from this. Get some money up front, at least from new customers, and enough to cover your costs. Try for stage payments if you can. Chase up payment when it's due. If they don't pay on time, give them a letter before action then go to Court. Don't mess around and don't let it drag on and on. A year is just a ridiculous length of time.

It's probably an expensive lesson for you, but hopefully you wont let it happen again.

jrterror_2 · 27 May 2017 at 10:34AM

Hi. Thanks for all your replies, even the less compassionate ones.
Well it looks like an expensive lesson learned. This was my first job working for a company and didn't know better. I am obviously far too trusting a person.
What is an MCOL?
Is it likely that I would have been paid something if I pursued before the company was dissolved?
It seems very un fair that a company can just write off all their debts, causing others to miss out financially. Where is the protection for people like my self?
Would I have been successful in small claims court, if they were bankrupt?
Thank all.

Thrugelmir · 27 May 2017 at 11:03AM

jrterror wrote: »

It seems very un fair that a company can just write off all their debts, causing others to miss out financially. Where is the protection for people like my self?

That's the nature of business. Companies fail on a regular basis due to any number of reasons. Including not being paid themselves by a major customer. In future do not deviate from your terms of trade. Once an account is overdue. Start a collection procedure. If you are unsure as to the procedure to adopt. Employ a specialist agency or even a solicitor. People not paying the money they owe is unfortunately a fact of life.

molerat · 27 May 2017 at 11:39AM

Watch Can't Pay, We'll Take It Away or The Bailiffs Are Coming for an education on people not paying their debts. It will be an eye opener to you on the lengths people / businesses will go to avoiding paying and show why, as soon as the debt is overdue, you get in there first before they have a chance to dissolve / do a runner / phoenix or all the other creditors go for their share before you !

Dissolved company owes me money

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