Reply to: Director Loan - Debt Recovery?

[ASB]

Update for anyone that's interested. A pre action notice has been sent to the director's last known address, with a certificate of posting from the post office, sent registered. Am actually hoping the people who now live in his old house see how official the document appears to be, and try to get it to him.

It's worded strongly and succinctly, as advised by ASB (ta again!).

In two weeks I will use the money claim online jobbie to file a CCJ against him.

My accountant is still adamant that once HMRC realise there are no assets in the company, they will do little more than chase the tax then begin wind up proceedings. Hhmm.

I think it was Paddy that advised on the wording.

But the very best of luck.

[MaryPoppins]

Pondlife likes this a lot.

And god forbid he comes out of the woodwork!

[Pondlife]

Ta. It may have no bearing on the Company side of things, but it will irritate the heck out of him on a personal level, so it's worth it. He is obsessed with his (previously fairly bad) credit rating, and likes his expensive things, usually bought on tick. It won't be long before he realises he has a CCJ, so I await his abuse with satisfaction.

Pondlife likes this a lot.

[MaryPoppins]

Best of luck MP.

Ta. It may have no bearing on the Company side of things, but it will irritate the heck out of him on a personal level, so it's worth it. He is obsessed with his (previously fairly bad) credit rating, and likes his expensive things, usually bought on tick. It won't be long before he realises he has a CCJ, so I await his abuse with satisfaction.

[Pondlife]

Best of luck MP.

[MaryPoppins]

Update for anyone that's interested. A pre action notice has been sent to the director's last known address, with a certificate of posting from the post office, sent registered. Am actually hoping the people who now live in his old house see how official the document appears to be, and try to get it to him.

It's worded strongly and succinctly, as advised by ASB (ta again!).

In two weeks I will use the money claim online jobbie to file a CCJ against him.

My accountant is still adamant that once HMRC realise there are no assets in the company, they will do little more than chase the tax then begin wind up proceedings. Hhmm.

[MaryPoppins]

Brill, ta. Could have found that myself I expect

[TheFaQQer]

Noddy question alert. How do I work out the interest due (at the BoE rate?) on the loan taken in January?!

http://www.thisismoney.co.uk/loan-repayments-calculator

[MaryPoppins]

Noddy question alert. How do I work out the interest due (at the BoE rate?) on the loan taken in January?!

[MaryPoppins]

In order to comply with the latest CPR (Civil Procedure Rules 2009) you will need to send a pre-action notice. (14 days) By doing this it will save any legal argument in future. The letter can be posted, you can get a certificate of posting (free) from the post office or send it recorded deliver to LKA. (I would do both). The best day to post is a Friday because that gives you exactly two weekends. Solicitors use this tactic often. Normally posted letters posted on Friday are deemed to be received on Saturday.
You can Google to find examples of letters however the wording is quite important because you need to think ahead. Head the letter “Notice Before Action” or similar. In your letter, mention that the loan was taken out on <date> and is “repayable on demand”. Mention “despite repeated requests you have failed to repay the loan and failed to make any arrangements to do so”. Also say that “You must repay the loan in full by <date> otherwise I will take legal proceeding to recover the amount and that may involve you paying costs and interest”. There are key words in the text, for example “must”. If you leave that word out, a good solicitor could claim the demand was not strong enough.

Keep the letter short and to the point. This letter will form part of your evidence.

Noted. Thank you hugely.

[Paddy]

In order to comply with the latest CPR (Civil Procedure Rules 2009) you will need to send a pre-action notice. (14 days) By doing this it will save any legal argument in future. The letter can be posted, you can get a certificate of posting (free) from the post office or send it recorded deliver to LKA. (I would do both). The best day to post is a Friday because that gives you exactly two weekends. Solicitors use this tactic often. Normally posted letters posted on Friday are deemed to be received on Saturday.
You can Google to find examples of letters however the wording is quite important because you need to think ahead. Head the letter “Notice Before Action” or similar. In your letter, mention that the loan was taken out on <date> and is “repayable on demand”. Mention “despite repeated requests you have failed to repay the loan and failed to make any arrangements to do so”. Also say that “You must repay the loan in full by <date> otherwise I will take legal proceeding to recover the amount and that may involve you paying costs and interest”. There are key words in the text, for example “must”. If you leave that word out, a good solicitor could claim the demand was not strong enough.

Keep the letter short and to the point. This letter will form part of your evidence.

[MaryPoppins]

Yes it's correct. Yes there is case law to support it.

"Usual or last known residence."

http://www.justice.gov.uk/civil/proc...6.htm#IDAECI5B

Also: Notices sent by recorded delivery are deemed served on the day of posting, not on the day they would normally be delivered, irrespective of whether they are returned as uncollected to the sender by the Post Office.

And: Pursuant to the Recorded Delivery Act 1962, a document which may be sent by registered post can be served by recorded delivery.

Personally I would recommend service in person to LKA and get the service sworn at the court office. There is little chance of comeback that way.

I think there are two types of procedure you can use. Part 7 or Part 8. In order to use the right form (Part 7 or 8) you first need to decide how much you are going after.

Eg:

£18 unpaid loan
£6 Corporation Tax
£360 court fees
£250 own expenses in preparation
£150 cost of service
(I think you are allowed to claim £9.20 per hour)

Thank you, I will definitely pay to have them served by someone. I will go after the 18k loan, plus interest, plus the court fees.

[NotAllThere]

...
I will be as honest as possible with HMRC, ...

Yes, you must be honest. But be very careful with which bits of the truth you reveal to them.

If you say something that gives them an easy route (for them) to deal with you, then they'll take it. No matter how unfair it might be.

[ASB]

Also: Notices sent by recorded delivery are deemed served on the day of posting, not on the day they would normally be delivered, irrespective of whether they are returned as uncollected to the sender by the Post Office.

And: Pursuant to the Recorded Delivery Act 1962, a document which may be sent by registered post can be served by recorded delivery.

Personally I would recommend service in person to LKA and get the service sworn at the court office. There is little chance of comeback that way.

I would absolutely agree about personal service. The problem with recorded delivery is "well yes, something was sent". It is difficult to actually prove it was the papers (though this could be achieved by doing it in a solicitors office to witness the insertion of the papers in the envelope, the sealing of it and an affidavit done. It then needs to be physically posted by the solicitor etc. in order to remove the possibility of allegation of tampering).

Problem is our civil legal system is largely predicated on an element of cooperation between the disputing parties. If one of them doesn't it turns into a procedural nightmare.

[Paddy]

Part 6 of the civil procedure rules ?

Physical sworn service to the last known address is usually enough to give irrebutable presumption of service. When done correctly even if it can be proved it was not received this is not enough to allow the defendant to rebut service. There is strong case law in this area.

Yes it's correct. Yes there is case law to support it.

"Usual or last known residence."

http://www.justice.gov.uk/civil/proc...6.htm#IDAECI5B

Also: Notices sent by recorded delivery are deemed served on the day of posting, not on the day they would normally be delivered, irrespective of whether they are returned as uncollected to the sender by the Post Office.

And: Pursuant to the Recorded Delivery Act 1962, a document which may be sent by registered post can be served by recorded delivery.

Personally I would recommend service in person to LKA and get the service sworn at the court office. There is little chance of comeback that way.

I think there are two types of procedure you can use. Part 7 or Part 8. In order to use the right form (Part 7 or 8) you first need to decide how much you are going after.

Eg:

£18 unpaid loan
£6 Corporation Tax
£360 court fees
£250 own expenses in preparation
£150 cost of service
(I think you are allowed to claim £9.20 per hour)