Can't pay you because...

[vetran]

It depends how they're playing "the game". If it was us HMRC would always be paid and in our experience one CCJ inevitably leads to another.

would be the sensible option agree, but if they are burning the VAT & Corp tax aren't they a lot of cash to miss?

since the government disconnected them and lost preferential debtor status doesn't it happen more?

True, but conversely they have been "allowed" to get away with it.

More nagging pain they get the more likely to be paid.? I assume that's what you help with?

A company doesn't need to be nosediving to do this, many businesses are doing the same currently just to artificially increase available cashflow. From sole traders to FTSE100 companies. One national supermarket chain just put all none food suppliers on 75 day payment terms up from 30!

180 days I have seen, disgusting but its going forward, suppliers can decide long term to stop supplying or put up prices. Something they should have covered in late payments act adding a strongarm clause.

It's Phoenix and you don't even need to sell it to the dog, you can use a pre-pack administration. All nice and legal.

lovely learnt something new. The idiots made it easier

Credit reports are useful, but not infallible. The financial situation of a company can change dramatically in a financial year. Look at the directors, if they have a string of failed/dissolved businesses in the past chances are they know exactly how to stay just on the right side of the law.

makes sense

That is incorrect. It doesn't matter when you get a CCJ you will still be an unsecured creditor and if the company goes under the CCJ is worthless as it cannot be enforced. You, like everyone else, will have to wait and see if the receiver pays a dividend (and they rarely do).

strange I thought you moved up to the top of the unsecured debtor pool?
No the receivers always seem to have so many costs, imagine the difficulty of doing the equivalent of a year end and paying your suppliers, not surprising there is no money left

Technically under the Civil Procedure Rules going legal is supposed to be the final step, not the first and given the budget cuts HMCTS are facing you could be looking at a three month wait from the issue of proceedings to securing a judgment.

oh

Time was, if you could get a personal cheque from the director you could claim they had personally taken on the debt and pursue them if the company went under. Unfortunately that time has passed.

has it how?

no wonder administration is so popular.

[Safe Collections]

would be the sensible option agree, but if they are burning the VAT & Corp tax aren't they a lot of cash to miss?

since the government disconnected them and lost preferential debtor status doesn't it happen more?

Yes it does, but HMRC can and do push for investigations when they lose out and the fraudsters often don't want to appear on their radar.

More nagging pain they get the more likely to be paid.? I assume that's what you help with?

Yes that is what we do But we are also a licensed credit referencing agency so we can (and do) provide data to other agencies on how a company behaves.

180 days I have seen, disgusting but its going forward, suppliers can decide long term to stop supplying or put up prices. Something they should have covered in late payments act adding a strongarm clause.

Often suppliers are dependent on getting their goods into the chains, so it can be a case of put up or go out of business. Hopefully the recast late payment legislation will redress the balance. But given the new talk of the secured finance scheme we aren't holding out much hope!

lovely learnt something new. The idiots made it easier

In fairness pre-packs do have legitimate uses, but are often just an excuse to avoid existing liabilities and leave creditors out of pocket.

strange I thought you moved up to the top of the unsecured debtor pool?

Nope, all unsecured creditors have the same right to a dividend irrespective of if they have a CCJ or just unpaid invoices.

No the receivers always seem to have so many costs, imagine the difficulty of doing the equivalent of a year end and paying your suppliers, not surprising there is no money left

If I was going to pick a career now, I would be going into the insolvency business. They always seem to get paid...

Although worryingly we are now seeing incidents of factoring companies sinking profitable businesses in back room deals with insolvency practitioners, but that's another story...

has it how?

Not through any legislation, just a slow change in the courts outlook. It is still theoretically possible to get a judge to agree, but in our recent experience it isn't anywhere as easy an argument to win as it was a few years ago.

no wonder administration is so popular.

Indeed.

[vetran]

Hopefully the recast late payment legislation will redress the balance. But given the new talk of the secured finance scheme we aren't holding out much hope!

I'll get me some of those loans and go bankrupt, ye-ha. 75% secured by government?

[Safe Collections]

I'll get me some of those loans and go bankrupt, ye-ha. 75% secured by government?

No the "new" system where rather than pay you on time they (various big co's) give you a note to take to the bank to borrow against your money that is being delayed. Then when you do finally get paid you can pay the interest back on the money you borrowed secured on the money you are owed...

No, it doesn't make a great deal of sense to us either!

Our blog on the subject is here - Warning a bit ranty

[vetran]

No the "new" system where rather than pay you on time they (various big co's) give you a note to take to the bank to borrow against your money that is being delayed. Then when you do finally get paid you can pay the interest back on the money you borrowed secured on the money you are owed...

No, it doesn't make a great deal of sense to us either!

Our blog on the subject is here - Warning a bit ranty

wow that really is incredibly stupid.