None Payment

[chef]

A long story cut short is as follows:

I worked for the end client, provided services and delivered on my end deliverable on time via an agency. The contract has now ended.

Payment terms are in a schedule within the contract, no mention of payment by end client before payment to myco. I am opted in.

Agency owes me over £15k in total over 4 invoices and is now 5 weeks overdue on the first invoice, 3 days overdue on the 4th invoice.

I've contact PCG who advised to speak with solicitor to send a 7 days Notice letter which I've done and are waiting for the solictor to call back.

From past experience of anyone on here:
- what reaction should I expect?
- what costs are involved in going to court? (assuming the 7 day notice is ignored)
- how lengthy could this be?

The agency is using the fact that they are due £600k+ from the end client as the reason for non-payment, they have verbally offered a payment plan of around £1.5k a week (not 100% confirmed as yet).. meaning around 10 weeks before arrears are cleared, my only concern with that is they go under themselves or file for bankruptcy before this is paid.

any helpful advice appreciated..

Chef

[Epiphone]

If you're opted in then they can't use the excuse of not being paid by the client as a reason to withhold payment from you. Have you been dealing with the people at the top or just the agent? Might be worth writing to the MD to gently remind them of their legal responsibilities.

What are the payment terms on the invoice? Have you printed on anything about claiming interest and penalties? Have a look at payontime.co.uk. Small claims is easy enough to do online and costs (IIRC) 10% but there's a ceiling of £5000 you can claim. It also shouldn't be a first and final solution, the court will want to see you trying to work it out first before resorting to legal action. Recorded letters, offer a payment scheme that's agreed in writing etc etc.

If you win in court they still probably won't pay, then you'll have to pay for bailiffs or issue a winding up order so much better all round to use the softly-softly approach first.

You could also mention to the client that seeing as your company hasn't been paid you won't be in on Monday. That might get the client to gee the agency up a bit. Depends on your relationship with the client though.

Oh, and name and shame.

[Hex]

There are a couple of threads on the PCG Legal and Accounting forum which have detailed steps for how to proceed from what I remember. You'd have to search for them. Try searching for small claims court or something similar.

[VectraMan]

I'm in a similar situation, though without an agent. I'm mindful of the fact that there's no point suing someone who can't pay, and also the fact that once I get lawyers involved they won't pay until they have to which could be a number of months. So for now I'm giving them some breathing space and keeping things amicable, but wonder if that's foolish.

Mine's about £7K. Does that mean I can't use the small claims court, or can I still claim £5K through the small claims?

[ASB]

If you win in court they still probably won't pay, then you'll have to pay for bailiffs or issue a winding up order so much better all round to use the softly-softly approach first.

You do not need to have got judgement to get a winding up order. The OP may have all the evidence he needs for a winding up order. You need to establish the debt - and by offering a payment plan the agency are doing that.

[chef]

The contract has ended and so im definately not turing up any more.

They have offered a payment plan but at 50% of my rate I see that as an insult as it is now 5 weeks overdue.

[ASB]

I'm in a similar situation, though without an agent. I'm mindful of the fact that there's no point suing someone who can't pay, and also the fact that once I get lawyers involved they won't pay until they have to which could be a number of months. So for now I'm giving them some breathing space and keeping things amicable, but wonder if that's foolish.

Mine's about £7K. Does that mean I can't use the small claims court, or can I still claim £5K through the small claims?

If you can legitimately split things up than you can have 2 claims in the court.

IME small and county courts have NEVER helped. Never got beyond judgement

For me - provided you can prove the debt - the winding-up order is the way to go. You can do it yourself (but I wouldn't). Last one I did was about 800 quid in costs on 20k. I'm sure there are people who'll do it on a contingent fee.

http://www.insolvency.gov.uk/guidanc...upacompany.htm

[Manic]

......not turing up any more.

Freudian slip?

[VectraMan]

For me - provided you can prove the debt - the winding-up order is the way to go. You can do it yourself (but I wouldn't). Last one I did was about 800 quid in costs on 20k. I'm sure there are people who'll do it on a contingent fee.

http://www.insolvency.gov.uk/guidanc...upacompany.htm

Thanks for the link.