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Client behind on payment and looks like they are about to go bump...

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    Client behind on payment and looks like they are about to go bump...

    I suspect I already know the answer to this but here goes.

    My client last paid one of my invoices last October.
    From then he came up with every excuse under the sun not to pay my remaining invoices. I haven't worked for him since April when I realised he couldn't pay anytime soon.
    I sent a letter in August with the amount he owed and a deadline to pay it by after getting fed up of empty promises.
    He totally ignored this. I was looking round at solicitors, but holding off on any further action as I didn't have the funds to pay for it, when he rang me about 3 weeks ago.

    He wanted me to agree to not take legal action while he sorted out his business, got his money troubles in order and then he'd pay. This would take 3-4 months he said. (I think it's called a Company Voluntary Agreement)
    He said he needed to have the agreement of all of his creditors to do this. If not then he would have to wind the company up and I would get nothing.
    So by email I agreed to this, he needed a reply by 28th September. Since then he has not contacted me.

    Speaking to an ex-colleague (and a permie) last night (I am now working for a different client) he told me that he (the colleague) is being made redundant on Friday.
    He told me the client didn't get the agreement of the Inland Revenue and 1 other creditor. The assumption is the company is going bump.

    So the question is, assuming that does happen, is there any action I can take to get what is owed (£25k) and how do I do this? Am I best seeking a solicitor?
    I'm guessing the answer is going to be if the company has gone due to lack of funds there is not a great deal of point spending money in court fees to get blood out of a stone.

    Thanks in advance.

    #2
    Assuming you are direct and not via agent or via umbrella?

    Comment


      #3
      Sorry I should have said, yes I am direct.

      Comment


        #4
        Do you have any Insurance .?

        Originally posted by slowjoe View Post
        Sorry I should have said, yes I am direct.
        with anyone for clients going belly up.?

        Comment


          #5
          Originally posted by tarbera View Post
          with anyone for clients going belly up.?
          No.

          Comment


            #6
            If they are going to go bump then they should have appointed an insolvency practitioner (it sounds like they have done if they have previously tried to arrange a CVA) – they will now either try and find a way for the company to continue as a going concern or they will wind it up (depending on what route is most appropriate to take).

            Either way, make sure that you let the insolvency practitioner know that you are owed money by the client and that way you will stand a chance (though you will not be guaranteed) of getting at least a bit of the money that is owed to you.

            Hope this helps!
            Craig

            Comment


              #7
              So let me get this right....

              - the client is in administration
              - convinced you not to get yourself listed as a creditor for the CVA
              - promised you they would pay when they exited admin?

              Comment


                #8
                Originally posted by jmo21 View Post
                So let me get this right....

                - the client is in administration
                - convinced you not to get yourself listed as a creditor
                - promised you they would pay when they exited admin?
                From what the OP has said, the client wasn't actually in administration when he said that. Administration is the next step (or straight winding up), it is now that he needs to make sure that he is listed as a creditor.

                Craig

                Comment


                  #9
                  Not even one

                  Originally posted by slowjoe View Post
                  No.
                  you dont know about like PCG membership +

                  Comment


                    #10
                    Originally posted by Craig at Nixon Williams View Post
                    From what the OP has said, the client wasn't actually in administration when he said that. Administration is the next step (or straight winding up), it is now that he needs to make sure that he is listed as a creditor.

                    Craig
                    Thank you Craig, you have been a great help.
                    You are correct. The company as yet are not in administration or winding up.
                    So I presume I need to contact the Insolvency Practitioner to be listed as a creditor? Does this have to be done before he goes bump?

                    Comment

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