Owed money from a Ltd company that is still trading?

Chrisbeau1982

Good evening everyone,

I have a dilemma which I am hoping you can help me with;

I am owed a large sum of money from a company called Twisted Lemon Ltd following an event I hosted in September this year.

The guy in charge, Mathew Wale, has rather charmingly made off with almost £5000 of my money from the bar takings plus a deposit which was due back upon the completion of the event.

I have won judgement for an even larger some of money through the SCC which includes statutory interest, late payments etc.. however there has been no response from him at any point.

I have since found out that the company is still trading but has no assets, furthermore he is a director of another Company called Smoking Sticks although there is no record of what they do.

My question is this;

Although I am resigned to losing this money is there any suggestions of what I can do legally to chase him for what he owes me?

I look forward to hearing your responses.

peter_the_piper

Surely your solicitor is sorting this?

bod1467

What solicitor? This was a SMALL claims case - no legal representation is mandated or even necessary if you know what you're doing.

paddyrg

Ask the court about enforcement methods? They can instruct bailiffs, or sheriffs via the high court

peter_the_piper

bod1467 wrote: »

What solicitor? This was a SMALL claims case - no legal representation is mandated or even necessary if you know what you're doing.

£500 by all means DIY but for £5k I would have thought it worth it. However as you pointed out he did not have one so my point was wasted.

Buzby

The debt is owed by a Ltd Company - not the director. So, if they are not paying, your only recourse is to enforce against the assets of the company - if there are none, or if you and the bailiffs cannot identify them - that's an end to the matter.

What the director does with other firms, or indeed on his own behalf, matters not a jot - your action was solely against a company with limited liability.

FR_262

Buzby is correct.

I'm in almost the same situation with Phoenix Upvc (thread on MSE)

You can make them bankrupt if they owe you more than £750.

It's expensive to do but this is what I'll be doing to Phoenix.

spacey2012

A LTD company trading in the red will gladly let you make them bankrupt.

When you make a LTD company bankrupt, you will get what it is Limited to.
Often £1, they can be back up and running within the hour.

£5000 is not money owed, it is credit and learning to manage credit risks is the key to any small business.
Any money owed is known as invoicing credit and allowing any form any amount of credit requires some serious checks.
credit check + collateral or guarantor such as bank guarantee.

What can look like "work" can actually be a interest free loan they never have to pay back.
In businesses, there is no trust, there are only two levels, what you can afford to loose and what you can not.
A CCJ against any LTD company is almost worthless, the place to be stringent is at the beginning in credit checking and invoicing credit protection in form of guarantees.

These lessons in how businesses work and shaft each other daily are learnt the hard way when you jump in top the water with those who do know how to swim with sharks.
Revise your business plan urgently.

Learn what invoicing credit is, remember you will be giving it and if you are unsure what guarantees are in place, ask your bank manger for advice, they will gladly offer it.
Trading with any LTD company is fought with danger, especially if they are intecepting or handling any of your assets.

FR_262

Thank you spacey. I'll PM you.