Client owing me £35k 4 months overdue and dodging me all the time

by scrwm Mon Feb 20, 2023 3:44 pm

We started this project to revamp a well know boutique hotel on Epping's high street.
We finished on time, despite losing our dear son to suicide 8 days prior to handover on the project.
In a way we were glad to have something to focus on as one can well imagine.
This client has been dodging paying us, we met him mid way on discounts and favours to get him to agree to paying.
So far, just hot air we dealing with. No money forthcoming.

I am beyond furious. But not and enough to go and pour good money after bad.

Every-time we call this guy to extract commitment re payment he strings us along another day, another week.

I've seen this before. This is the UK tho, and I can't send my guys in there to recover our goods we installed as I would have done where I lived before moving here. I am obliged to do things lawfully however this client has rules of his own clearly.

I am beyond angry that he has treated our family business this way, but I guess he saw a gap and took it.

I'm no longer willing to sit back and wait.

£35k at 2% interest daily as our invoices state is mounting up fast.

We'd agreed a 20k settlement 3 months ago. he's not stuck to it - not even paid a penny.

I can send a final demand, I know to do that.

How would you guys suggest I go about getting him to pay. Right now I want the non discounted amount plus interest. I am done waiting.

thanks in advance
scrwm

by flyingfish Mon Feb 20, 2023 4:20 pm

Does the client have assets that would cover this? If so, and if you feel that the debt is unarguable, the "nuclear option" would be to serve a Statutory Demand, which gives notice that you'll start insolvency proceedings if the debt isn't paid. Its the nuclear option because if it turns out that the debtor can raise counter arguments, insolvency proceedings are more expensive than normal civil cases.

One thing to be wary of is multiple company names, is the actual legal entity that owes you money the same exact legal entity as owns the assets.

by scrwm Mon Feb 20, 2023 4:54 pm

Thanks flyingfish,

It would be a real pain to recover assets other than the cash till at the bar. the place is packed at weekends with 65 covers inside and 330 outside. They are definitely making money.

It seems they have one main company, 5 shareholders, one of which is a LTD company owned by the chap we have been dealing with. He's an accountant. Both companies are registered to his home address (idiot that he is).

I've no doubt he'd pull a fast one and say the company is bust.

I like that suggestion. How would I issue a statutory demand?

Thanks in advance

flyingfish wrote:Does the client have assets that would cover this? If so, and if you feel that the debt is unarguable, the "nuclear option" would be to serve a Statutory Demand, which gives notice that you'll start insolvency proceedings if the debt isn't paid. Its the nuclear option because if it turns out that the debtor can raise counter arguments, insolvency proceedings are more expensive than normal civil cases.

One thing to be wary of is multiple company names, is the actual legal entity that owes you money the same exact legal entity as owns the assets.

by flyingfish Mon Feb 20, 2023 5:45 pm

You'll need to do some reading, it may be that nobody on here has actually done this themselves. I looked into it at one stage but we got things resolved another way.

Start reading from here in the first place ..
https://www.gov.uk/statutory-demands

You'll note that it is in a sense a form of bluff, you hope the debtor will pay or make acceptable arrangements. However you need to be prepared to follow through and/or deal with a challenge.

CAB has guidance written from the debtors point of view ..
https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy/creditors-making-you-bankrupt/creditor-has-sent-a-statutory-demand-bankruptcy/

And to repeat the point, you need to be 100% sure of your target. Their cashflow is an asset that could be seized if they're put into insolvency, but you need to be sure the trading company is the same entity as owes you money. And if it's a limited company, remember you can pursue down but not up - if the debtor is a holding company which owns the trading company then the latter is fair game. If the debtor is a subsidiary you can't make a claim against the parent company.

by scrwm Mon Feb 20, 2023 6:48 pm

Super advice flyingfish, some reading for me Smile

I'm up for that any day...

flyingfish wrote:You'll need to do some reading, it may be that nobody on here has actually done this themselves. I looked into it at one stage but we got things resolved another way.

Start reading from here in the first place ..
https://www.gov.uk/statutory-demands

You'll note that it is in a sense a form of bluff, you hope the debtor will pay or make acceptable arrangements. However you need to be prepared to follow through and/or deal with a challenge.

CAB has guidance written from the debtors point of view ..
https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy/creditors-making-you-bankrupt/creditor-has-sent-a-statutory-demand-bankruptcy/

And to repeat the point, you need to be 100% sure of your target. Their cashflow is an asset that could be seized if they're put into insolvency, but you need to be sure the trading company is the same entity as owes you money. And if it's a limited company, remember you can pursue down but not up - if the debtor is a holding company which owns the trading company then the latter is fair game. If the debtor is a subsidiary you can't make a claim against the parent company.

by scrwm Mon Feb 20, 2023 8:42 pm

Spoke with a friend of mine who is a bankruptcy solicitor.
We're going to have the SD1 issued following a warning call from her office. it's not necessary to do the call but its a courtesy move in our favour if we go the full way to lodging the bankruptcy petition. I am beyond waiting for yet another meeting this client will cancel last minute and dodge us promising to pay the following week. 120 days is more than enough time for him to pay up

Thanks FlyinFish for the SD suggestion, what a powerful tool this is.

This was a £190k project - what he is messing about for the remaining 20k or so I have no idea. My wife has allowed him generous discounts to get him to agree to pay. Well, now that he hasn't paid, those discounts no longer apply and we want the full amount.

lets see how quick he responds to a SD

hahahah
i love this forum the only sane place to go when things get mad

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Client owing me £35k 4 months overdue and dodging me all the time

Client owing me £35k 4 months overdue and dodging me all the time

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Re: Client owing me £35k 4 months overdue and dodging me all the time

Re: Client owing me £35k 4 months overdue and dodging me all the time

Re: Client owing me £35k 4 months overdue and dodging me all the time

Re: Client owing me £35k 4 months overdue and dodging me all the time

Re: Client owing me £35k 4 months overdue and dodging me all the time