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Post by ravey123 on Feb 27, 2008 22:29:38 GMT
Any solicitors, accoutants or the like on here.
My business is thriving but one of my customers has gone into administration owing me almost £7000.
I've had letters from the Administrators but am pretty loathed to fill in their forms because my suspicion is that they may use my information to get out of paying the outstanding sums (I'm under no illusions that I will get all of the money back because I have no title to any goods produced by my customer as my services are purely technical).
One of the questions is
"give details of whether the whole or part of the debt falls within any (and if so which) of the catagories of preferential debts under Section 386 of, and schedule 6 to, the Insolvency Act 1986 (as read with schedule 3 to the Social Security Pensions Act 1975)"
What the hell does this mean?
Anyone gone through the painful experience of one of your customersin Administration - how do I mitigate my losses.
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Post by chell_rosey on Feb 27, 2008 22:40:38 GMT
For £7K it's well worth a 30 minute chat with a solicitor.
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Post by okeydokeystokie2 on Feb 27, 2008 22:51:11 GMT
Move fast mate, because my experience is you will be offered so much in the pound, and it could be as low as 10p or less, depending on their outstanding liabilities. Some would say skip the normal channels, front up and get what you can.
Good luck!
ps. Get in front of the business owners, not the administrators if you can.
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Post by mumf14 on Feb 27, 2008 23:12:22 GMT
I'm sorry to be the bearer of bad news but there is little you can do other than declare your claim to the administrators and wait and see what they have to say.
There is not much point in paying out further money for a solicitor to find out that the cupboard is bare and you could get as little as 10p in the pound or less...
There are guidlines which have to be adhered to but it depends on the extent of the debts and to who it is owed as to which dictates the priority creditors and without knowing the full details I doubt if you will be one of them.
Get your forms in (Recorded delivery)with documentary evidence,receipts etc,etc..sit tight for the moment and wait to see what they come back with.Decide later if you want to spend more on a solicitor....£150 an hour ....Barrister even more.
If it's any consolilation to you I smashed into the back of a police vehicle tonight after my brakes failed...They immediately cautioned me with the intention of driving without due care and attention...
Luckily I had a torch and pleaded my innocence by looking under the wheel arch to where the brake pipe was split...
I am awaiting their response .....
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Post by fca47 on Feb 27, 2008 23:34:17 GMT
Preferential debts don't apply to you, it will be wages, redundancy etc. Worth putting in your claim, they may have assets to liquidate or the business may be sold. Once your debt is proved you should get a copy of statement of affairs. Which will show you whether you are likely to get anything.
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banksie66
Academy Starlet
So that's two Prawn Goebels, A Herman Goerring and a Colditz Salad
Posts: 180
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Post by banksie66 on Feb 27, 2008 23:38:08 GMT
You will find "preferential debts" to be the taxman then the bank in that order. If there's any capital left it will then be shared downwards from there.
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Post by Funky on Feb 27, 2008 23:56:47 GMT
What company is it? is it worth buying out of Adminstration or is it a dead dog?
Just thinking you might be able to buy it for £1, pay yourself 7k and then sell it for 50p?
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Post by miltonstokie on Feb 27, 2008 23:59:58 GMT
Are they based on Hamil rd ? If so id say its a dead dog
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Post by eddyclamp on Feb 28, 2008 10:13:12 GMT
Ravey
take it from me you will end up with fook all,you ask the administrators for a breakdown in their charges and it will make you cry.They will bleed every penny out of it if there is money in the business(it`s all legal) and you will be left with about thirty bob.It`s happened to me a couple of times.I challenged one once to justify his cost`s,they just laugh at you.Robbin B*stards.
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Post by PerCyfilth ....Captains Log on Feb 28, 2008 11:05:04 GMT
I would think long and hard about trade indemnity insurance fo the future if a £7k debt will hurt you so badly. Preferential creditors will be tax,bank and the administrators fee if it continues as a going concern or if sold i doubt you will get a bean. Check if the company is limited or if you can go after the proprietor /owner. Speak to a solicitor.
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Post by fca47 on Feb 28, 2008 11:05:48 GMT
Don't let the above put you off. The situations vary greatly, quite often you don't get much, but you never know. Sometimes they are sold as going concerns etc. Can't see you have got anything to lose by proving the debt.
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