Customer Won't pay debt. What to do next...We'd prefer to make them cease trading? CCJ? Strike Off?

tightauldgit

Has the company that owes you the debt been dissolved? It's not clear from your posts the facts of the matter. 

It doesn't matter a jot what the individual in question is doing, it matters what the company you have the debt with is doing. 

I think all you are going to do here is expend a lot of time and energy on a fruitless chase. 

Bobbobbobingalong

Be smart, go for a Garnishee Order!

Some useful information and an explanation -https://www.pricebailey.co.uk/blog/ https://www.legislation.gov.uk/uksi/1981/1687/part/30/made-order/ 

FrankFalcon

tightauldgit said:

Has the company that owes you the debt been dissolved? It's not clear from your posts the facts of the matter. 

It doesn't matter a jot what the individual in question is doing, it matters what the company you have the debt with is doing. 

I think all you are going to do here is expend a lot of time and energy on a fruitless chase. 

Hi

No.  The company is simply trading as normal.  There is nothing on companies house to say the business is dissolved etc.  The only 'evidence' that we have that the company has gone under is because he says so.  Even with my limited knowledge that surely is not right.  We have no proof, documentation or anything that tells us this company has ceased trading...just the bloke saying so.

Grumpelstiltskin

Does the company appear on any online site where you can leave a review?

If so leave a review but be careful how you word it, but you can perhaps avoid other people making the same mistake.

Smithcom

FrankFalcon said:

Grumpelstiltskin said:

Even if you get a CCJ against the company it won't stop it trading.

He obviously knows he is sailing close to the wind but he is quite happy with this. Many people go through their business life setting up companies, owing people money and closing the companies down and then setting a new company up.

Thanks Grumplestiltskin

Totally accept what you're saying and take on board your comments but I am not the sort of person to just lie down and concede defeat if there is even a slight chance of winning.  If you ask me what I am hoping to gain it is obviously the money.  However, I am certain we won't be getting it.  But, if I can ensure his trading name, reputation or business suffers so much that it prevents other people for losing money then so be it.  My reasoning is... I think back to a company I used to work for years ago that used a service called 'Risk Disk'.  The purpose of Risk Disc was to alert suppliers to companies/individuals/trading entities who had bad credit/gone bust etc.  My boss at the time swore by 'Risk Disk' and would never deal with any people that were flagged up.  So, let's say we hit him with a CCJ or a money claim etc.  Let's assume he then fails to pay.  My reasoning is that the judgement will still be out their, regardless of wether he pays or not?

To have a successful CCJ, you would need a valid claim against the company.   If the claim is actually against a previous liquidated company, you will not be able to attach a CCJ to newco

If money is of no object, there will be plenty of legal routes that you could consider (including a claim against the company directors if you can prove that they were trading whilst insolvent), however, ultimately, it is likely to cost you more than you will ever see back.   Principles can be expensive!!

SC

ACG

FrankFalcon said:

ACG said:

Send a letter before action. 
If no answer, file it with small claims court. It will cost about £100-200 I think, google MCOL. 

There is also potential, you could try to go after the director personally. If he has been trading whilst insolvent it is a criminal offence, but I think you could end up wracking up legal fees for that and no guarantees of success. 

So, we will probably send a letter before action.  However, we looked online and there are loads of different ones.  Which one do we use? Is there a specific template especially suitable in this case? We don't want to look silly by sending a letter that is not particularly relevant to this kind of debt.

There is no specific letter. 
The letter we use is basically split into sections:
A brief overview of the situation - ie we provided xyz on xx/xx/xxxx. We made you aware of payment terms with a payment being due on xxx. We did not receive payment in that time. 

We have since had contact on:
xx/xx/xxxx via email,
xx/xx/xxxx via phone 

We have also attempted to discuss this on xyz. 

Next steps:
ie As we are now overdue we are giving you 14 working days in order to make payment, for the avoidance of doubt we expect payment to be made by the end of xx/xx/xxxx. If we have not heard from you in that time we will be taking this to small claims where we will be looking to claim for the original amount, plus court costs and interest charged at the standard rate of 8% from the date the invoice became overdue. - The MCOL system will help you to work out these costs when you file a claim. 

The implications of this could result in a CCJ for the company which can affect the ability obtain credit in the future. 

Final paragraph should say something like: This will be the final communication we make on the matter before legal proceedings start. Should you wish to discuss the matter you can contact me on 011111111/0781111111 or email aaa@aaa. 

Regards,
John Smith. 

But you can tailor the letter to your requirements. It doesnt need to be too long, ours is less than 1 page. Admittedly we have only used it a handful of times in 10 years so not the most experienced. Most people pay up when the letter hits the mat. Frustrating really as we buy into our customers and it turns the whole thing a bit sour. And obviously we did the work we said we would. It took a few of them to try and not take it personally its just a cost of doing business that needs to be factored in I suppose. 

ACG

Grumpelstiltskin said:

Even if you get a CCJ against the company it won't stop it trading.

He obviously knows he is sailing close to the wind but he is quite happy with this. Many people go through their business life setting up companies, owing people money and closing the companies down and then setting a new company up.

Totally agree with this. 
But I know when I deal with companies I look into them. Not because I am worried about getting ripped off but it tells you a lot about someone. If I see someone had a company that traded for 10-15 years and then went under and they started again I will give them the benefit of the doubt. 

If they have phoenixed 2-3+ companies I would not deal with them. I try to only work with people I trust and respect. Its hard to have respect for someone who has burned people over and over again. I would rather earn less than be linked to someone like that. 

So getting a CCJ against the company might not get you the money back, but it might make it harder for the directors to get credit down the line. 

Khaderbhai

You have a couple of practical options if you want to take this further. 

Providing the company is still active, you could send the letter yourself DIY style or get a solicitor to send one out. Yes the second option has some cost but there is a higher chance of payment being obtained when it comes from a third party in my experience. If no joy with the letter, next stage is to claim DIY style through MCOL or using the solicitors again. Both options wouldn’t cost more than £300 in total but you will need to weigh up whether thats good value or not. 

Not sure on the rules on this board but if you PM me I can put you in touch with a solicitor to arrange the letter. 

FrankFalcon

OK.  Sent the Letters 1 week ago.  I have given them time to pay etc.  I will pick up on this when the payment deadline is reached and come back here.  Thanks for all your help.

robatwork

Can you clarify if the invoice was issued against Company 1, Company 2, or in his personal name?

BTW the links in your OP clearly identify the person and companies.