Judgement when a company is in administration.

miserable_ol_so_n_so

Please can someone tell me what happens if I obtain judgement in a county court against a company that is in administration.
In particular:
1.Can I instruct the court bailiff to go and collect the sum ordered? and is the administrator obliged to pay up?
2.If 1 above is not possible, but if eventually the company does recover, will I then be able to collect the judgement?
3. How much debt is necessary for me to enforce bankruptcy order on the debtor company?

Thanks in advance.

vaio

generally if the company is in administration then you join the list of unsecured creditors and will get what the pence in the pound rate is, if anything.

If you paid by credit card then your best best is to go after the credit card company under s75

Valli

I do believe that you become a creditor of the company in such circumstances. Is it a limited company?

If you are defined as a secured creditor of a limited company you have a different status than an unsecured one (and sorry I don't know the difference, except that secured creditors come first in the peckign order).
Once the assets of the company are wound up then the administrators pay out. They may not pay out all that is owed, though (they can only pay out from the fund that there is) so, for example they may make a payment of 10p in the £1 so for every £1 you are owed you get 10p, if, for example the company has debts of £1m and assets of £100K

This is put very simply, from my (long ago) business studies qualification and may NOT be completely accurate.

I am posting becuase EVEN IF you have won a case you still may not get ANY money.

(This is why some 'directors' constantly wind-up limited companies and form new ones.)

(But see post 2)

wealdroam

A company in administration is protected by law from many legal actions against it.

More in depth details can easily be found on the internet.

dalesrider

vaio wrote: »

If you paid by credit card then your best best is to go after the credit card company under s75

I think we need a lot more info from the OP. Before any options can be put forward.

miserable_ol_so_n_so

My problem is that a supplier in administration is dragging feet in the hope that I will go away. It is possible that the company could eventually be bought up and remain in business. My dilemma is, do I do nothing and just wait and wait?
I thought I had a cunning plan, to go to county court and obtain judgement and get my money back in the event the company doesent actually go bankrupt.

Helix

miserable_ol_so_n_so wrote: »

My problem is that a supplier in administration is dragging feet in the hope that I will go away. It is possible that the company could eventually be bought up and remain in business. My dilemma is, do I do nothing and just wait and wait?
I thought I had a cunning plan, to go to county court and obtain judgement and get my money back in the event the company doesent actually go bankrupt.

If they get bought out then you still have no rights over the new company. You will remain an creditor with the company in administration.

zzzLazyDaisy

miserable_ol_so_n_so wrote: »

My problem is that a supplier in administration is dragging feet in the hope that I will go away. It is possible that the company could eventually be bought up and remain in business. My dilemma is, do I do nothing and just wait and wait?
I thought I had a cunning plan, to go to county court and obtain judgement and get my money back in the event the company doesent actually go bankrupt.

If the company is in administration, it is already insolvent (ie bankrupt)

dalesrider

miserable_ol_so_n_so wrote: »

My problem is that a supplier in administration is dragging feet in the hope that I will go away. It is possible that the company could eventually be bought up and remain in business. My dilemma is, do I do nothing and just wait and wait?
I thought I had a cunning plan, to go to county court and obtain judgement and get my money back in the event the company doesent actually go bankrupt.

If they get bought out. The new owners still may not honor old orders.

Come on stop beating around the bush and give us what the problem is.

As there are other possible solutuions, but without details on what the issue is we can't provide them.

peachyprice

miserable_ol_so_n_so wrote: »

My problem is that a supplier in administration is dragging feet in the hope that I will go away.

If they are in administration they cannot pay you, they cannot give you any preference over the rest of their unsecured creditors, even if they wanted to, so it's not a case of them 'dragging their feet' at all.

It is possible that the company could eventually be bought up and remain in business. My dilemma is, do I do nothing and just wait and wait?

If they are bought out it won't be the same company, even if it is trading under the same name, so they would still be under no obligation to pay you

I thought I had a cunning plan, to go to county court and obtain judgement and get my money back in the event the company doesent actually go bankrupt.

You can't gain an advantage over other creditors by taking them to court, simple as.

bris

Administration is not the end of a company, it means the administrators have been brought in to run the company to determine it's final outcome. At the initial stage it's protected from it's creditors and everything is put on hold (still trades) until everything is assessed.

The administrator can sometimes find a buyer for the business and sell it as a going concern, this is number 1 priority, this would involve finding a buyer to take it on warts and all, which means all creditors will be paid in full. This can happen when the business has a decent percentage of assets and prime locations or customer base that would be a benefit to a competitor and save it from going into other competitors hands, a bidding war could take place.

Other option's for the administrator is to sell only the parts of the business that are profitable to a preferred bidder saving some of the business and jobs, the rest liquidated but leaving the creditors with only a small percentage if anything.

The final stage is total liquidation where the company is liquidated for it's assets, this also leaves creditors with the scraps, more often that not secure creditors like the banks and tax man come first and there is nothing left.