Dodgy builder - please help !

MAli2017
MAli2017 Posts: 2 Newbie
in Consumer rights
Hi, I paid a building company £28K up front for of renovation of my house (as advised by the Council), but the work was never done. Only £5K was done as stated by surveyors and now builders have gone into liquidation and won't do any work. They since set up 2 companies. Do we have any legal regress ? Would any no win no fee lawyer take this case on ? Thanks

Comments

  • wealdroam
    wealdroam Posts: 19,181 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    MAli2017 wrote: »
    Hi, I paid a building company £28K up front for of renovation of my house (as advised by the Council), but the work was never done. Only £5K was done as stated by surveyors and now builders have gone into liquidation and won't do any work. They since set up 2 companies. Do we have any legal regress ? Would any no win no fee lawyer take this case on ? Thanks
    Hi. Welcome to the forums.

    Are you saying that the council advised you to pay £28,000 to the builder before any work was done?

    How did you pay this money?
  • MAli2017
    MAli2017 Posts: 2 Newbie
    No they recommended the builder and the builder asked us to pay them. We paid by bank transfer. What do you think ?
  • wealdroam
    wealdroam Posts: 19,181 Forumite
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    MAli2017 wrote: »
    No they recommended the builder and the builder asked us to pay them. We paid by bank transfer. What do you think ?
    I think you have been very silly. Could you not see the risk?
  • naedanger
    naedanger Posts: 3,102 Forumite
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    MAli2017 wrote: »
    No they recommended the builder and the builder asked us to pay them. We paid by bank transfer. What do you think ?

    I suggest you speak to Citizen's Advice given the large sums involved. But if the firm has definitely been liquidated I fear there may be nothing realistically that you will be able to do to recover your money.
  • shaun_from_Africa
    shaun_from_Africa Posts: 12,858 Forumite
    Name Dropper First Post First Anniversary
    Any possible steps you may be able to take in an attempt to recover the money will depend on how the building company was set up.
    When you made the bank transfer was it to a company or directly to the builder's personal bank account?

    If they were a limited company and have been liquidated then there is little that you will be able to do as the money was owed by the company which is no longer in existence.

    However, if the builder was operating as a sole trader then irrespective of the firm being wound up, the builder is still personally liable for any outstanding debts.
    This doesn't mean that you are guaranteed to get any money from them. If they are not willing to voluntarily pay then you would have to consider legal action and even if successful this doesn't mean that you will get refunded.

    If they have no money then you will need to pay for bailiffs to pursue them and if they have no assets in their name, this will be a bit pointless and would cost you more money.
  • hollydays
    hollydays Posts: 19,812 Forumite
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    It's inusual for councils to recommend traders.
    Do you have a letter from the council saying they are approved by them?
  • phill99
    phill99 Posts: 9,093 Forumite
    First Anniversary First Post
    If a company has been liquidated, it is unlikely that there will be any money to pay you. You will be way down the list of creditors. The insolvency company will get paid first, then the tax man, then people that lent them money, then creditors, then unfortunately, people like yourselves.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
  • arcon5
    arcon5 Posts: 14,099 Forumite
    First Anniversary First Post Combo Breaker
    phill99 wrote: »
    If a company has been liquidated, it is unlikely that there will be any money to pay you. You will be way down the list of creditors. The insolvency company will get paid first, then the tax man, then people that lent them money, then creditors, then unfortunately, people like yourselves.


    Tax man is no longer a preferred creditor. They are in the mix with everybody else
  • arcon5
    arcon5 Posts: 14,099 Forumite
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    Op when you say liquidated... Did the formally appoint liquidators? Or allow the company to be struck off?
  • phill99
    phill99 Posts: 9,093 Forumite
    First Anniversary First Post
    arcon5 wrote: »
    Tax man is no longer a preferred creditor. They are in the mix with everybody else



    Happy to be corrected
    Eat vegetables and fear no creditors, rather than eat duck and hide.
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