Builder ceased trading

robin_banks

If the guy is a limited company it doesn't matter anyway it cannot be touched.

lethal0r

a director of a limited company can still have personal guarantees on the business.

hethmar

And you cant take his tools of trade either.

Gangstabird

I am really sorry that you are in this situation. I would do as others have said. When you get someone to take this dreadful situation on and finish it. Agree a payment schedule and take photocopies of their insurance and ring the insurance company to make sure it's real. I really am sorry as it's builders like this who give the good ones bad names.

epz_2

robin_banks wrote: »

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.

I said offer, not to pay till the work is done.

Its up to the builder how he puts his payments though his books and hence his problem, not the op's.

devils_advocate

it appears that he is cowboy from the companies law perspective, as well as the building.

He cannot hide behind the limited company facade, due to the paperwork he has given you.Basically, the requirement is that the company must disclose its name and if you other items of information on all its business documentation, including letters, orders, etc. If it doesn't, it and its officers are committing an offence with fines up to £1000. There is caselaw to show that for the full company name is not shown on all correspondence, any signatory to the had correspondence can be personally liable for any debts supposedly in the name of the company.

My advice to you would be to consult a solicitor as soon as possible, in order to go after him personally for the monies which are owed to you. It may be that he doesn't have anything personally but at the least you will get in before the rush!

There is a useful article summarising the case law here: http://www.instantcompanies.co.uk/SigHer.html

withabix

If you paid by cheque and did so recently, contact your bank and try and cancel the cheques. No harm in trying. Migh tbe pointless, but nothing ventrured, nothing gained.

You CAN keep his tools - there is a standard clause in construction contracts (JCT, ICE, ECC etc) to cover this, so it would be difficult for him to win a case against you if you refused to give them back to him, even if there is no written contract in place.

hethmar

If he is bankrupt, the big boys will get the money when its distributed Im afraid, no matter who gets in first with a claim - unless he is uptodate with his VAT, tax and bank charges which Id think was doubtful.

withabix, Im surprised about the tools business - we had been assured that we were unable to claim tools as they were the guys trade and potentially we would be taking his means of living away from him.

Debt_Free_Chick

Burnt wrote: »

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.

Sorry - no such thing. "He"is not anything. As you say, the developer is a limited company so either an administrator or a liquidator has been appointed.

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?

The administrator or the liquidator. Once they're appointed, the directors are sacked (well, replaced by the administrator/liquidator).

But don't expect to see any of your money. There's a long list of those who are owned money, with HMRC pretty much at the top of the list. If the business is bust, then there's not enough to pay the debts so your money will be used to pay as much of the debt as possible.

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'.

Very confusing then, although a partnership can be declared bankrupt. The situation is the same though - if the partners don't have enough assets to pay their debts, then they are bust and you have to "join the queue", so don't expect to see any money.

Sorry to be doom & gloom but your situation is no different to those who bought tickets to fly on airlines that went bust! No ticket (extension) and no refund (unless you paid by credit card, which I doubt).

guyb99

he's probably on the BR forum as we speak...