HELP!!...Company gone into Administration and owes me money..

Keeping_Positive

Someone mentioned Carriers Lien in an earlier post where a courier may have goods that still need delivering. If you have some then you can hold this over them. The other way companies get money back is by being an essential supplier that the administrators might need to run the company until its liquidation. As a small business and a courier unless you dont have competition I can see them just using another courier.

Courier_man

Keeping_Positive wrote: »

Someone mentioned Carriers Lien in an earlier post where a courier may have goods that still need delivering. If you have some then you can hold this over them. The other way companies get money back is by being an essential supplier that the administrators might need to run the company until its liquidation. As a small business and a courier unless you dont have competition I can see them just using another courier.

Unfortunatally I have none of there goods to hold. I haven't delivered for them since, all the staff have been let off.

It's an engineering firm and all production has stopped. They have a few jobs left around the factory, which will be sold off to the customers.

Don't know who will be delivering, certainly not me!

chalkie99

Is there anyway I can some how push my self to the top of the "list" of people they need to pay back?

Unfortunately you will be at the bottom of the pile behind the administrators who charge a small fortune for their services, the taxman and vatman, the bank and any other creditors with security.

Courier_man

I'm still waiting for this "letter" from the admin company

Going to ring them on Monday if it hasn't arrived

Is there anything else I could do in the mean time...

Should I ring a solicitor?

paulwf

Courier_man wrote: »

I'm still waiting for this "letter" from the admin company

Going to ring them on Monday if it hasn't arrived

Is there anything else I could do in the mean time...

Should I ring a solicitor?

There's nothing wrong with calling a solicitor, but be aware that for advice beyond the initial chat you might be looking at £200+ p/h before VAT and you probably won't get anything useful out of it.

I think you'd be better off calling your accountant first and working out ways to write it off and reduce your tax liability. They have probably also come across your scenario many times and may have advice.

By the way I'm sorry to hear about your situation, sadly this sort of thing is very common as it is hardly ever reported unless it is a high st chain.

patman99

If you need to start looking for work, try advertising on sites such as 'Amanwithavan' and 'Shiply'. Have heard eBay and eBid are worth a free 99p listing to get business.

£7k is an awful lot of wonga to not get paid. The one lesson I learned when doing my business studies was 'never let 1 customer account for more than 25% of your income'.

Here's a valid question. As the business appears to still have orders to complete, if the administrator finds a buyer and the company carries-on trading, will they still be liable for this debt to you ?.

Keeping_Positive

patman99 wrote: »

Here's a valid question. As the business appears to still have orders to complete, if the administrator finds a buyer and the company carries-on trading, will they still be liable for this debt to you ?.

Doubt it most likely the sale will exclude the old company debts.

The administrator can run the company and use this to fufill existing orders to get the most out of the old company which may help but these new debts are seperate to the old debt ie if the OP does work for the [STRIKE]courier[/STRIKE] administator he cant claim the 7k unless the company cannot trade on without him which is very unlikely.

heathcote123

patman99 wrote: »

Here's a valid question. As the business appears to still have orders to complete, if the administrator finds a buyer and the company carries-on trading, will they still be liable for this debt to you ?.

The answer, unfortunately, is almost uncertainly not, though they may want to carry over existing suppliers if the relationship was good.

I've been knocked for a similar amount recently, it takes months for the administrators to wind the company up, and if you're lucky (ie the administrators don't leech every last penny at a ridiculous hourly rate, which they are very good at) you may get a percentage back of your debt.

Sorry wish I had something more positive to add, but probably best to chalk it up to experience, and rigidly enforce credit limits in future - though I appreciate it's always a hard call to make when you want the business, it's rarely black and white.

Good luck, and I hope you get some money back.

Courier_man

I've got a meeting to attend next week with the administrators

I'm not the most Business minded person (only 22!), I understand parts of the letter

However could someone possibly clarify exactly what's going to happen in this meeting, by reading this letter?

If you could send me your email address (Private message), then I can send you the letter

I just want to be prepared

Cheers for the feedback

toddle2u

It will be the creditors meeting that you will be attending where the formal ratification of the appointment of the Insolvency Practitioner (IP) will be made and agreement to his fees. If enough creditors vote (by value of debt) they can appoint their own IP as Administrator but this is rare (relatively). You will then be talked through the Statement of Affiars (SoA) and the reason for the company failure and be given the chance to question the Director(s) on this. The IP will also state what has happened to the company's assets - if he has sold them back to the Directors or if the company is still trading and what he intends to do with the company and its assets.

You will need to complete a proof of debt form prior to the meeting and lodge it with the IP's office.

It's all fairly standard procdure