My Kitchen Supplier gone bankrupt

Bibliophile_2

Hi everyone

I thought you some of you might be able to help me understand bankruptcy from the "other side" of the problem.

We're half way through having a new kitchen installed and there's been a lot of delays, with what seem like very flimsy excuses, resulting in us still not being able to use the kitchen 3 weeks later and no deadline for completion in sight.

I found out this morning that the owner of the business had declared himself bankrupt earlier this year. When I asked him about it, he said that he had been advised to do it by his Accountant, as he'd recently reached retirement age, wanted to transfer the business to his partner and needed to sort out his pension. He told me that his Company was still trading fine and that there were no problems with it financially.

As we've paid for most of the kitchen already I'm worried that we haven't got a leg to stand on.

Can anyone advise?

skylight

Did you pay him personally (is he self employed) or a Ltd company? Before or after he was declared BR? Was he declared BR personally?

Have you asked him when he is going to complete?

Bibliophile_2

skylight wrote: »

Did you pay him personally (is he self employed) or a Ltd company? Before or after he was declared BR? Was he declared BR personally?

Have you asked him when he is going to complete?

We paid them by cheque, made out to the Company name. Their website says they trade as a partnership, with him being one of the partners.

The bankruptcy order date was 13 January, 2010, with an automatic discharge 12 months later. I'm not sure about completion and don't know where I can get this information from I'm afraid

nervousmother

are both partners bankrupt?

sizzler

check out company name on company house to see if they are ok.

check him on inslovency register.

if his partner is still trading take it up with him

sizzler:)

Bibliophile_2

nervousmother wrote: »

are both partners bankrupt?

No, just the one. He is still working for the Company though and has signed the contract with us.

debtinfo

hi, when did you sign up for the contract

Bibliophile_2

debtinfo wrote: »

hi, when did you sign up for the contract

We signed the contract in February this year.

debtinfo

okay, upon the making of the bankruptcy order the Partnership will have been disolved, The other partber can carry on trading but as a sole trader, the bankrupt can carry on working for the business but as an employee. Since the bankruptcy happened before you signed the bankrupt would have been signing as an employee of the other persons business. Therefore since that business is solvent you have a fully enforceble contract and the other person is liable for completing the contract.

The bankruptcy has no effect on your position and you may take any normal procedures to enforce your contract

Bibliophile_2

debtinfo wrote: »

okay, upon the making of the bankruptcy order the Partnership will have been disolved, The other partber can carry on trading but as a sole trader, the bankrupt can carry on working for the business but as an employee. Since the bankruptcy happened before you signed the bankrupt would have been signing as an employee of the other persons business. Therefore since that business is solvent you have a fully enforceble contract and the other person is liable for completing the contract.

The bankruptcy has no effect on your position and you may take any normal procedures to enforce your contract

Thankyou, that makes me feel a bit more comfortable now.