Builder going into Administration

Hussain22

Hi All,

My builder has gone into administration after receiving a large deposit and additional payment totalling to £55,000. Upon some research the director of the company is known for not carrying out work, not paying employees or subcontractors. The company has been bought by a company of which the director is the same person. They owe over 1.3 million. The person from the company that we have been in contact with ensures the project has been moved to the new company. And will be carried out. We can’t trust them with a penny more. This was our life savings. We bank transferred the money by bill payments through HSBC. What are our options? Do we trust them to actually build something? Do we try and recover the money from the bank? (If it’s even possible). It seems like a scam. As other customers have reported the same but with smaller amounts of money. Please help. 

williamgriffin

Hussain22 said:

Hi All,

My builder has gone into administration after receiving a large deposit and additional payment totalling to £55,000. Upon some research the director of the company is known for not carrying out work, not paying employees or subcontractors. The company has been bought by a company of which the director is the same person. They owe over 1.3 million. The person from the company that we have been in contact with ensures the project has been moved to the new company. And will be carried out. We can’t trust them with a penny more. This was our life savings. We bank transferred the money by bill payments through HSBC. What are our options? Do we trust them to actually build something? Do we try and recover the money from the bank? (If it’s even possible). It seems like a scam. As other customers have reported the same but with smaller amounts of money. Please help. 

I take it it's a limited company that's gone into administration. If so then it's unlikely you'll see any money back, have you had any work for the £55,000 you've paid?

Its not the banks problem so they don't owe you anything. 

JJ_Egan

Contact the builders Administrator and register as a creditor .

Certainly do not pay any more out .

davidmcn

Your money (or what was left of it) will have gone into the pot to be distributed to the creditors. Even if you want the newco to take over the job, they won't have been passed your £55k. 

Hussain22

JJ_Egan said:

Contact the builders Administrator and register as a creditor .

Certainly do not pay any more out .

Unfortunately, wouldn’t get much being a creditor. We called the administrator and they said we would be bottom off the list. After HMRC, vat and other things. They came today to survey the house for the second time acting normally. They are insisting they will carry out the job with the remaining money (>70k).

Hussain22

williamgriffin said:

Hussain22 said:

Hi All,

My builder has gone into administration after receiving a large deposit and additional payment totalling to £55,000. Upon some research the director of the company is known for not carrying out work, not paying employees or subcontractors. The company has been bought by a company of which the director is the same person. They owe over 1.3 million. The person from the company that we have been in contact with ensures the project has been moved to the new company. And will be carried out. We can’t trust them with a penny more. This was our life savings. We bank transferred the money by bill payments through HSBC. What are our options? Do we trust them to actually build something? Do we try and recover the money from the bank? (If it’s even possible). It seems like a scam. As other customers have reported the same but with smaller amounts of money. Please help. 

I take it it's a limited company that's gone into administration. If so then it's unlikely you'll see any money back, have you had any work for the £55,000 you've paid?

Its not the banks problem so they don't owe you anything. 

Zero amount of work done. Yeah it’s a limited company.

Hussain22

davidmcn said:

Your money (or what was left of it) will have gone into the pot to be distributed to the creditors. Even if you want the newco to take over the job, they won't have been passed your £55k. 

That’s the reality yes. They insist they will take the new job at the discounted amount of money we have already paid. Do we risk more money or lose the 55k for good? 

TadleyBaggie

As long as they are willing to complete the work before you pay them another penny, if they want more money upfront then no.

Aylesbury_Duck

Hussain22 said:

davidmcn said:

Your money (or what was left of it) will have gone into the pot to be distributed to the creditors. Even if you want the newco to take over the job, they won't have been passed your £55k. 

That’s the reality yes. They insist they will take the new job at the discounted amount of money we have already paid. Do we risk more money or lose the 55k for good? 

Given the lack of confidence that your £55k is safe, I wouldn't be paying them a penny more until they've delivered at least £55k of work.

Hussain22

TadleyBaggie said:

As long as they are willing to complete the work before you pay them another penny, if they want more money upfront then no.

If I say they won't get a penny until they do a significant amount of work it could risk they walking away? I believe they are not obligated to anything after the old company went under. It's a tight rope and they have us by the neck. Thank you btw

JJ_Egan

Company A has your money and no longer trading .

How did company B get your money that was an asset of company A .??