Chasing debts

[aidanb19]

Yet another money owed thread sorry...

Owed money by previous contractor, I was the subcontractor and worked through CIS.

The problem is he bankrupted himself and started again, the money owed was from his previous company, BUT he said to invoice his new company for the amount (which he hasn't paid obviously)

Its an amount I am not happy to write off.

Any ideas on my options?

 

[Zeespark]

Small claims court aidan.

Andy

 

[Badger]

register here in this link, they will sort it out for you including getting bailiffs out to knock knock on the t ats door.

https://www.moneyclaim.gov.uk/web/mcol/welcome

 

[aidanb19]

I didn't think this would be an option, with it being owed by his previous company?

Also, before and after he is a Limited company, this time the registered office is his accountants

 

[NozSpark]

If he's already bankrupt threaten him that you'll go to his "official receiver",,, remember as a bankrupt his business practices (money) should be being watched by the OR and they take non payment of debts (once bankrupt) very seriously... they could extend his discharge date quite easily... normal is 12 months, but if he doesn't abide by the rules that he is now trading under then they will extend it.

From his point of view, it is a debt that his old company owed and should now be part of his bankruptcy.. so he could caim that you are trying to get around his bankruptcy

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I didn't think this would be an option, with it being owed by his previous company? Also, before and after he is a Limited company, this time the registered office is his accountants

Also as a bankrupt he is not allowed to be a director of a company

 

[aidanb19]

Ok being realistic, legally I should expect nothing from work before he went 'bankrupt', but probably 85% of the debt is when I did some extra work for him (I know, I know...). This was between July and August last year, under his new name. All I have for this is an invoice, is that all I need?

Also, he witheld my CIS records from our shared accountant, incurring late self-assessment fines for me - can I pass those on?

Thanks for your help so far mate

 

[Evans Electric]

I had this happen , company was up and trading again under a management buy -out , original directors gone, but the original (bankrupt) company owed me the money not the new outfit and I had no claim against them . That was my understanding anyway.

My understanding is you claim it from the OR and when they and the Revenue have had their snouts in the trough , you get to share the last

 

[Theorysparky]

Ok being realistic, legally I should expect nothing from work before he went 'bankrupt', but probably 85% of the debt is when I did some extra work for him (I know, I know...). This was between July and August last year, under his new name. All I have for this is an invoice, is that all I need?Also, he witheld my CIS records from our shared accountant, incurring late self-assessment fines for me - can I pass those on?

Thanks for your help so far mate

Speak to your tax office

tell them your woes with your cis records

if you have employed an accountant to manage your CIS i would consider a complaint to their ombudsman,,,,,,,,

Taxman likes this sort of thing,,,,also find out if they have paid your CIS.........

 

[NozSpark]

Ok being realistic, legally I should expect nothing from work before he went 'bankrupt', but probably 85% of the debt is when I did some extra work for him (I know, I know...). This was between July and August last year, under his new name. All I have for this is an invoice, is that all I need?Also, he witheld my CIS records from our shared accountant, incurring late self-assessment fines for me - can I pass those on?

Thanks for your help so far mate

When you did the work for him (after he went bankrupt) did you know he was bankrupt?

As a bankrupt he is not allowed to owe >

 

[ProDave]

A simple and cheap option is to hand the debt over to a debt collection agency. The up front cost to you is very small (I think it was

 

[aidanb19]

Theorysparky - I have today received copies of CIS payments made by him from HMRC, so at least i'm not now relying on him now to get the self assessment in, though I do owe

 

[NozSpark]

So I guess that the work you carried out after he was bankrupt was then for a different company of which he is not a director. If you were in the middle of a contract he should have told you immediately that he was bankrupt so that he didn't incur any further debt to you

 

[aidanb19]

It wasn't a contract as such, just that he wanted to pay via CIS rather than PAYE; was general day-to-day work rather than just a specific job.

 

[NozSpark]

Just the same really,, at the time of bankruptcy he should have laid off all employees and contractors

 

[Sidewinder]

I had this happen , company was up and trading again under a management buy -out , original directors gone, but the original (bankrupt) company owed me the money not the new outfit and I had no claim against them . That was my understanding anyway.My understanding is you claim it from the OR and when they and the Revenue have had their snouts in the trough , you get to share the last

 

[aidanb19]

So whats the situation when he has asked to invoice his new company with the old debt?

Basically I have 3 invoices;

All 3 are dated 6th September 2010

1st states 'xxx works from 2009'

2nd states 'xxx works from Feb 2010'

3rd states 'xxx works from 19th July 2010 to 20th August 2010'

Only in the period in the 3rd invoice was I actually working for this new company.

 

[Sidewinder]

If the invoice is in the name of the new co. then the debt is with the new co. however, it may wriggle out of it as perhaps it did not exist at the time of the works, thus it could not have incurred the debt?...

Have you spoken to the guy about this?

 

[NozSpark]

WHen did he tell you he was bankrupt/co. went into liquidation? and when did he actually go bankrupt/liquidate his co.?

If he let you continue working for him/his company without telling you that he'd done this then he commited fraud... he should have laid all employees & contractors off on the day he went bump..

If this is the case then you should contact his insolvency practitioner or official receiver as he would have been told to do this... they will come down on him like a tonne of bricks if he can't account that his actions were in accordance with their guidelines/rules

 

[aidanb19]

Sidewinder:

Essentially I have 2 debts, one to the original company which is bankrupt and one to the new.

It is just him, both companies were/are just variations of his initials. Both are limited companies. CIS was his way round the extra cost of PAYE employment.

I never had any letters about the bankruptcy, he's never actually said it to me maybe for that reason.

 

[Sidewinder]

OK,

I am Ltd. Co. "sole" trader now.

He should have informed you if he pays take the money & keep him on a tight rein, if he don't then IP it is, or their professional body as per Noz.