CCJ to a LTD company ignored, now what do we do?

auntybee

Hi, I hope you can help me to help my sone get some money which is owed to him.
He was self employed for a few months and during this time set up with an umbrella company who looked after all his tax and NI liabilities (for a small fee). All his hours and expenses were documented and signed for by the Director of the limited company and the contract was that he should be paid within 30 days of sending the invoices. He was told that there was a problem in paying him, so for a while he sat back and waited patiently. After many months and emails and phone calls( messages left, not direct contact) he issued a CCJ on the Ltd company, which was also the home address of the director.No response.We know the director still lives at the address, so will have received the CCJ.The Company secretary was also sent a copy.
He knows he can now send the Bailiffs in, but is not sure due to being Limited if this would help his cause.
The other problem is the Company, although showing live in Companies house,may not be trading under that name any more, as there is now another Company selling the product, but just using an email address for contact.But the director is the same person.
As a footnote, the Company who my son is claiming against had a very well- known sponsor, so it is not (or was not!) without resources. Maybe we should make it known to that particular person?
As I said earlier, everything is properly documented and signed for, so surely there is a way for him to receive what is owed to him?
I hope someone can help or point us in the right direction.
Thank you.

Debt_Free_Chick

The only way now is bailiffs.

The CCJ is against the specific company named on the Judgement. If that company has been wound up or liquidated or is just generally bust, there's no guarantee he'll get his money - he'll have to join the creditors and will only get a percentage of what he's owned, if anything.

The individual directors are not liable for the CCJ so they can not be personally pursued. Any new company is not liable either.

How much are you talking about?

auntybee

Thank you for your reply. He has asked at Citizens advice and that is what they said.
The amount is around £3000, so quite a few hours work was involved.
If the Company is still trading, is there any chance then?

Debt_Free_Chick

auntybee wrote: »

If the Company is still trading, is there any chance then?

Depends. The bailiffs will seek repayment and you'll have to see what they do. I think you/bailiffs might need a court warrant to seize goods to the value of £3k if the company don't cough up.

Your local County Court will usually have a list of bailiffs. Your best bet now is a chat with them.

auntybee

Thanks again, your advice is very helpful.

The Company is showing as live on Companies house with the CCJ against it. I expect it can be frozen and not trade, without showing bankruptcy as she has another similar (identical) company now set up?

I read somewhere if the company is insolvent, but still trading, the directors become personally liable for the debts. But surely being limited protects them from this happening?

Debt_Free_Chick

auntybee wrote: »

I read somewhere if the company is insolvent, but still trading, the directors become personally liable for the debts.

Not "automatically" - the bailiffs can't say "you're trading whilst insolvent so cough up. It would be a matter for the insolvency practitioner when/if appointed.

But surely being limited protects them from this happening?

If they are found to be guilty of trading whilst insolvent, this overides the limited liability.

But you are getting way, way ahead of yourself So just look into the bailiff route and see where that takes you.

Be mindful of spending money, when you are looking to get back "only" £3k

auntybee

I was getting confused wasn't I? You have explained it well and he is now contacting the court local to the Company, not to himself, to find out about their list of bailiffs.This only involves a small fee, so worth a try.
We really appreciate your advice.:T

Bigadz1

Hi all,

I am the 'son' in question here. Just to update as things have moved on a bit further and I am still trying to find the best way to get what is owed to me .

Through the company I now worked for I was able to check on company house and it seems the company who I did work for has now filed for 'Dissolution'.

From my research I have found that I should as a creditor of the company have been notified within 7 days. It is an offence to have not let me know and deliberate concealing of the application from any interested parties (me) could lead to imprisonment of the director in question.

Now seeings as I have heard nothing and this has occured It is quite clear to me that an offence has been committed.

Obviously I need to do something right away but is informing company house the best immediate solution? At the end of the day I am still looking to get what is owed to me.

Much thanks in advance

wilford981

Same thing has happened to us. It's a really sneaky way of any ltd company getting out of having to settle CCJs.
You must make an objection to companies house within the 90 day notice period stating that you have a CCJ against the company and they have not settled. Companies House will then not allow the dissolution to go through.
Good luck

DVardysShadow

No real idea, but as the company is going for dissolution, I think that the treat of a criminal complaint may be the last lever you have to influence things.

Judas

Criminal penalties may apply but they are unlikely to be enforced in most cases as they are very hard to prove. For example all they need to show is they sent letters to creditors, not that it was received, or the creditor agreed.

http://www.companyrescue.co.uk/close-limited-company/company-dissolution

You really need to seek some legal advice here on objecting the dissolution, however, bear in mind to meet the dissolution criteria there will likely be little in the way of assets hence you may be throwing good money after bad.

I am afraid I suspect the dissolution is a mechanism to start trade under a new name and escape the debts in this current company. Even if it went to a formal insolvency rather than dissolution I suspect they wouldnt have assets to settle the debts.