Financial Prospects...

SavvySaver24

We had an Consumer Rights issue over some work we've had done that we couldn't reach an agreement on with the supplier. We therefore engaged our legal cover via our insurance who have come back with their letter of advice today. They've said while we have a strong case and high expected success rate, due to the lack of financial prospects (busines isn't a Ltd company, and owner doesn't own their own home) they won't issue legal proceedings.

Does anyone know if I went down the Small Claims Court route if the outcome would be the same? I.e. despite the case being rock solid the company isn't a Ltd one/listed on Companies House and the owner doesn't own a house so there's no financial prospects of recovery?

tacpot12

The prospect of recovering what you are owed is low, but not zero. You seem to have a good case, so it might be worth it ultimately, but I would suggest you look into what enforcement of the debt might cost you. If the debt is more than £600, you can have it transferred (at more cost) to the High Court, where the  High Court Enforcement officers seem to have more success.  

SavvySaver24

Thanks for that, I'll look at the enforcement route. And additionally, does anyone know of solicitors are allowed to access (or can request) HMRC self-assessment? I'm gutted my legal cover won't take it on, not as a result of lack of case, but due to financial prospects - can they not request accounts? Both for the business (even though not registered on companies house) and personal ones?

user1977

SavvySaver24 said:

does anyone know of solicitors are allowed to access (or can request) HMRC self-assessment? I'm gutted my legal cover won't take it on, not as a result of lack of case, but due to financial prospects - can they not request accounts? Both for the business (even though not registered on companies house) and personal ones?

No, of course solicitors can't go delving into everybody else's tax affairs (would be great if we could!). You need to form a view based on whatever information is publicly available e.g. from credit records or your best guess based on their trading etc.

DB1904

tacpot12 said:

The prospect of recovering what you are owed is low, but not zero. You seem to have a good case, so it might be worth it ultimately, but I would suggest you look into what enforcement of the debt might cost you. If the debt is more than £600, you can have it transferred (at more cost) to the High Court, where the  High Court Enforcement officers seem to have more success.  

Even high court enforcement can't get blood out of a stone. 

DB1904

SavvySaver24 said:

Thanks for that, I'll look at the enforcement route. And additionally, does anyone know of solicitors are allowed to access (or can request) HMRC self-assessment? I'm gutted my legal cover won't take it on, not as a result of lack of case, but due to financial prospects - can they not request accounts? Both for the business (even though not registered on companies house) and personal ones?

Your legal cover won't take it on as there's a risk they won't get paid and they can't see where they could recover costs from. However that's not to say the individual won't pay if you win.

What was the work? Was it construction and is there a history of them not paying?

tacpot12

DB1904 said:

tacpot12 said:

The prospect of recovering what you are owed is low, but not zero. You seem to have a good case, so it might be worth it ultimately, but I would suggest you look into what enforcement of the debt might cost you. If the debt is more than £600, you can have it transferred (at more cost) to the High Court, where the  High Court Enforcement officers seem to have more success.  

Even high court enforcement can't get blood out of a stone. 

I would agree completely. "More success" doesn't mean they are successful in all cases. 

SavvySaver24

user1977 said:

SavvySaver24 said:

does anyone know of solicitors are allowed to access (or can request) HMRC self-assessment? I'm gutted my legal cover won't take it on, not as a result of lack of case, but due to financial prospects - can they not request accounts? Both for the business (even though not registered on companies house) and personal ones?

No, of course solicitors can't go delving into everybody else's tax affairs (would be great if we could!). You need to form a view based on whatever information is publicly available e.g. from credit records or your best guess based on their trading etc.

What's a best guess based on trading though? What on earth is publicly available to be able to get a view of their trading history?

SavvySaver24

I'm also a bit confused - so again grateful if anyone can help - solicitor said she searched the Land Registry to see if they owned land/property, but when I go on I can only search by property to see who owns it. Not by name to see what property they own?

user1977

SavvySaver24 said:

user1977 said:

SavvySaver24 said:

does anyone know of solicitors are allowed to access (or can request) HMRC self-assessment? I'm gutted my legal cover won't take it on, not as a result of lack of case, but due to financial prospects - can they not request accounts? Both for the business (even though not registered on companies house) and personal ones?

No, of course solicitors can't go delving into everybody else's tax affairs (would be great if we could!). You need to form a view based on whatever information is publicly available e.g. from credit records or your best guess based on their trading etc.

What's a best guess based on trading though? What on earth is publicly available to be able to get a view of their trading history?

Do they appear to be still actively trading, are their premises full of stock/equipment, is there a flash car parked outside, etc.

Aylesbury_Duck

Or pose as a new customer (or get someone else to do so) and see if a) they're trading at all, and b) if there's any indication of how busy they are, e.g. lead times for the product/service.