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Claiming money from companies with no money

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Yesterday I issued the N180 Directions Questionnaire against a car dealership for a faulty vehicle which was sold to me. This morning I received a message from Companies House stating the company I'm taking to court is being struck off and will cease trading. The director has started a new car dealership at the same address. The old company's website has disappeared and it appears like they have already ceased trading. They are doing this in an attempt to avoid court action. Reviews of the company show they have done this to other people in the past.

Now, it seems I can object to the striking off and I'm very confident we would win in court. However, what's to stop the director having drained the old company of its assets so that if I win, there's no money to pay out? Can the director not be held responsible or his new company?

I'm owed over £9k. It just feels like a massive loophole in the system that allows directors to dissolve companies and start identical ones when faced with court action. Can anyone provide any hope at all or have they properly got away with this?

Comments

  • Ectophile
    Ectophile Posts: 7,973 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Unfortunately, it's a well-known loophole, and there's not much you can do. Some people even go so far as to have new companies lined up and waiting to take over as each previous one goes bust.


    If you could show that they traded while insolvent, you could claim against the directors. But that's very difficult to do.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • jawknee
    jawknee Posts: 5 Forumite
    edited 27 November 2019 at 11:32PM
    Thanks. Up to a week ago this company had a lot of vehicles for sale which will likely now have been transferred over to the new company, as they have done many times in the past. If I've understood what I've read correctly, this could be deemed as Fraudulent Conveyance in order to deny creditors the opportunity to be repaid and can legally be reversed. But I'd have to win the small claim first and then wouldn't know where to begin taking things further (A solicitor? Companies House? The police?) to investigate the "fraud". A massive headache.

    Gutted. I can't even leave an arsey review since they no longer exist.
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