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Builder ceased trading
Burnt_2
Posts: 2 Newbie
Apologies if wrong topic heading but can't spot obvious one to put this in - please advise.
I employed a builder to do an extension on my house. He's walked off the job stating that he's "ceased trading". Basically he's bust but is not yet in liquidation, ie in a sort of limbo. He has a lot of my money in stage payments; a lot more than can be seen in the amount of work done so far.
The question is this: Who do I chase to reclaim money from him? There is no liquidator yet, his accountant can't speak to me, I have written to him but he says there is no money left in the company and there are lots of creditors. Who can I turn to, to pursue his company for re-imbursement? I have to be careful, ther's no point in shelling out lots to a solicitor when there is no money in his company to pay out. His company is limited according to companies house but his letterhead doesnt state that and states his name plus one other as 'partners'.
Any advice appreciated
I employed a builder to do an extension on my house. He's walked off the job stating that he's "ceased trading". Basically he's bust but is not yet in liquidation, ie in a sort of limbo. He has a lot of my money in stage payments; a lot more than can be seen in the amount of work done so far.
The question is this: Who do I chase to reclaim money from him? There is no liquidator yet, his accountant can't speak to me, I have written to him but he says there is no money left in the company and there are lots of creditors. Who can I turn to, to pursue his company for re-imbursement? I have to be careful, ther's no point in shelling out lots to a solicitor when there is no money in his company to pay out. His company is limited according to companies house but his letterhead doesnt state that and states his name plus one other as 'partners'.
Any advice appreciated
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Comments
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Can you recover any materials that the builder has bought to carry out the work? How did you pay the builder? Can you cancel any cheques?0
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Who is your contract with? The limited company, the builder by name, a partnership?
However,I do think that your chances of seeing any of your money again are on the wrong side of minute.0 -
I'll be honest here you've next to no chance of getting your money back and no chance of him completing the work. If there are any materials on-site they may not be your builders anyway as he may not have paid his suppliers for them.
If he is registered at companies house he is legally required to quote this on all paperwork i.e. invoices. If you know the registered compnay name you can check as to what thier status is i.e. struck off, or a proposal to strike off or see if a bankruptcy is pending, which I think is the most likely case."An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
Well similar thing happened in this area about 2 years back - the builder disappeared to Spain I believe. We were sub contracting - he asked us to do the work a week before he went under - *********** would have known what was happening. We havent seen a penny of the money Im afraid. Some of his customers had paid up to £50k upfront for work, poor devils.
The only other time this happened in our 25 years of trading, the builder owed money to VAT and Inland Revenue and his bank. They all got first dibbings, nothing left after that for the rest of us.0 -
how about offering him under the table payments, if his company is bust its not like he will be short of labour and having some cash the banks dont know about could be useful0
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You could do that, but it would be totally bloody stupid (and illegal) to do so IMHO.
There are no gaurantees that said builder will do anything other than pocket the money."An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
First step, check your house insurance to see if you have legal cover. If so take advice from that.
Secondly, how did you pay? If by credit card your CC company would be jointly liable.
Thirdly, send the builder a LBA (letter before action) demanding he finish the job or return the money for work not completed.
Fourthly, contact local trading standards at the council.
Fifthly, look at an online court money claim. May focus his mind.
If he has no money, you won't get anything. But if he has a house you could get a charging order on it, so you would get money on sale.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
...He has a lot of my money in stage payments; a lot more than can be seen in the amount of work done so far...
Why did you pay upfront before the work was carried out.
Personally I wouldn't like to pay for anything until it was complete, but even if I was forced to pay in staged payments, I would not release any funds until that stage was completed.
You can try and pursue the builder for any losses, but obviously if he's not got any money, you will be throwing good money after bad."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
Has the guy left any tools on site?if so dont hand them back.I know someone in a similar situation last year,same story,he came back a few days later and did a days work on the property.
His sole intention was to remove all his tools etc to which he did and never returned.Official MR B fan club,dont go............................0 -
Re a charge on house, I think you may find that will be in the wifes name or will be repossessed.0
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