Money Owed to a company that has been dissolved

Masked_Marauder

First, if this is in the wrong place thanks to someone who will no doubt move it!

A friend owes just over £2250 to a company. Following a CCJ she was paying £10 PCM through a solicitor. A few months after the CCJ the company went into administration for some time, and it is now showing at Companies House as being dissolved.

My friend has today received a letter from the solicitors demanding the full outstanding balance. Clearly she does not have this or any prospect of raising it.

But the question is, can the solicitors demand this and if so, as the company is dissolved and therefore no longer exists, who could they collecting the money for? They are not helpful on the phone simply saying she owes the money and that they are collecting it on behalf of the director of the company. Only if the company is dissolved how can it have a director (are they not barred from being directors anyway?)

Any enlightenment on my understanding of the situation is appreciated.

Andy_L

As the company has gone into administration it owes money to someone. The administrators use the assests of the company to pay these people.
Your sisters debt is one of the assests of the company & is thus used to pay them.

As to whether they can demand full payment I don't know but I'd of thought she could come to the same £10/mth agreement

Masked_Marauder

Thanks, I did understand that, but the company has now gone beyond administration and is dissolved, all the creditors have seen all they are likely to get, so as far as I can make out any assets left over now go to the Crown. As for the administrators, they are gone now, the last thing they do is dissolve the company.

You can see the dilemma here, she is being asked by a third party to pay up to a company that in law no longer exists.

WHA

Check if the debt was sold on to a third party, or whether it was sold on to the director by the receivers - it is very unlikely that it will have been forgotten and written off. It is a fairly common practice for a debt to be sold. The solicitor should be able to tell you. You probably need to negotiate to get back to paying £10 instalments.