Selling a debt

chaddy_2

Hi new to the forum and after some advice!!

I'm owed £5k by an ex customer of mine. I've served warrants etc, tried making him bankrupt( unfortunately couldn't afford to carry that through) now the courts have decided that he can pay me £100 per month.........1st payment due to me by 16th Dec 05....and guess what he's defaulted.

I've realised that i'm never going to see this debt payed. I was wondering if i could sell the debt and at least get some cash, plus someone else gets the grief.

Does anyone know of anybody that "buys" debts??

Bossyboots

Does he have a property on which you can apply for a charging order. This won't get you your money right now, but he won't be able to sell the property without you being notified and you can go after him again then for settlement from the sale proceeds.

You can also apply for an order for sale further down the track if it seems appropriate.

chaddy_2

This guy has lots of property unfortunately none of it in his name!! He's an accountant and he also dabbles in mortgages.

I guess it's some kind of tax fiddle??

Tried having a charge on his own home but that got reposessed. The flat that i renovated was in someone elses name and that has been reposessed also!!

robertbruce

Hi
In Scotland, there is a system where, after getting the CCJ (decree in Scotland) you can have bank accounts frozen if you know which bank he is with (try getting a cheque for even a small amount to get his bank details) , you can have wages arrested if he is employed by someone else, and you can have an inhibition put on him to stop him selling any property before settling his debt with you (this might be the charging order mentioned earlier). If he is a crooked accountant as you suggest, he will have covered most of these angles, but a word with a lawyer might tell you if any of these methods have an equlivalent in English Law which you can use.

The other side of the coin is that he might genuinely be in trouble financially, and if you can work out an arrangement where he can make small payments to you, then that helps both of you. I just feel from your notes here that this is not the case and you will need to consider the stronger options. Good luck. Bob.

BobProperty

I think that since he has defaulted on an agreement that was upheld / agreed in court you have to go back to the court and go for something stronger. Attachment of earnings won't work (he's an accountant and probably works for himself). Bailiffs may be tricky as he probably knows how to avoid that too. Why didn't the bankruptcy work? If you or anyone does find someone who will buy the debt please let me know as I could do with selling mine! Is he allowed to carry on practicing as a accountant (or is he merely a "tax advisor") if he is getting court orders against him?

lixi

Hi Chaddy,

This chap sounds a bit dodge but if he is a practising accountant then the biggest stick you have got to beat him with is the threat of bankruptcy. The ICAEW will strike off an accountant who is made bankrupt; the theory being that if you can't handle your own money then you are obviously not fit to manage anyone else's. Same sort of thing operates for solicitors.

Have you tried serving a statutory demand? Threat of making them bankrupt with minimal cost. Just have to have an undisputed debt of +£750. Gives him 21 days to pay or you can apply to court to have him made bankrupt. Not knowing much about his finance situation, generally it probably won't be worth doing though as you are an unsecured creditor and will probably be bottom of the pile.

You have optiosn with other forms of enforcement but there are obviously costs associated with those (e.g. Garnishee orders and Freezing Orders). It is a long route to travel.

Lixi

Thefunkygibbons

That would only work if he is a Chartered Accountant

Many people claim to be accountants, but they don't have formal qualifications

woohoo_postingid

Send the boys round