• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.
  • If you need direct help with your employment issue you can contact us at admin@legalbeaglesgroup.com for further assistance. This will give you access to “off-forum” support on a one-to- one basis from an experienced employment law expert for which we would welcome that you make a donation to help towards their time spent assisting on your matter. You can do this by clicking on the donate button in the box below.

Help!! How do i recover this debt?

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Help!! How do i recover this debt?

    Hi

    I have just worked 3 years as an owner driver for a company. However, i have had to stop due to cash flow issues. In APril this year, one of the companies they sub contracted into went bust costing them a substantial sum of money. All the subbies who worked for them had to "put our monies owed on hold" subject to them getting any back. Thats not happening now!!

    However, i believe, officially i am still owed this amount (in excess of £6000) as the company i subbed into is still operational. I think that they will try to say that we agreed to write the debt off

    Can you confirm this is stil officially owed and if so how should i go about recovering the debt

    thanks in advance

  • #2
    Re: Help!! How do i recover this debt?

    Did you sign anything to confirm that you were putting your monies on hold ?

    Comment


    • #3
      Re: Help!! How do i recover this debt?

      Hi

      No nothing signed. Basically we were on 30 days with the guy i work for (Co X) and when the other co went bust we had to "lose" the o/s amount. The co who went bust set up under new name and paid Co X on a wk by wk basis. The result was we "lost" the money o/s (to Co X) and started from scratch payable weekly thereafter by Co X

      Hope this is clear coz its quite hard to put into words

      Regards

      Comment


      • #4
        Re: Help!! How do i recover this debt?

        Sorry but it's about as clear as mud to me. I think I've worked it out though. Please corrct me if I've got it wrong.

        The company you worked for owed you the money, not the company that went bust owing them the money. It was up to company X to pay what they owed you, or not, as the case may be. I really can't see the point of yo agreeing to "lose" the outstanding amunt. The debt should have been left outstanding until such time as company X paid you, whether it was 30 days or not.

        Presumably by "losing" the o/s money due you have also "lost" the tax and/or VAT lianility on it? Have company X also "lost" the invoices for the amount they owed you? This is hardly likey, as they will no doubt be using your invices as Purchase Invoices evidence in order to inflate their cost of sales on their balance sheet thus reducing their own tax liability. Quite frankly it's no wonder you have cash flow problems if you let someone get away with owing you 6k.

        Doing this by the back door route and getting nothing in writing to prove that the debt was ever owed or would be repaid leaves you without a leg to stand on, IMO.

        If your original invoices ever went through your books, the just send them copies with a statement and payment reminder. If they didn't, then I suggest you put them through now, backdating to the relevant tax point and send them to the company owing you the money. If you have proof that you actually did the work, such as signed P.O.D.s that would help too.
        Is no longer here

        Comment


        • #5
          Re: Help!! How do i recover this debt?

          Hi Wendyb

          You seem to have got it!!

          The money o/s is still o/s to all intents, but what they said was it would be paid back when they got. This is never gonna happen

          However, as you rightly say , in my eyesthey still owe me as i worked for them, i will re-issue invoices to them asap.

          What procedure do i then follow to recover the monies?

          They will undoubtedly contest this

          Thanks

          Comment


          • #6
            Re: Help!! How do i recover this debt?

            Send the invoices, if they don't pay, after reasonable chaisng etc, you can either file at court or issue a Statutory demand. They have no grounds to contest it, as far as i can see. The contract, sub contract, whatever, was between you and them. You did the work, they owe you the money, simple as that. The fact that they have not been paid by another company is neither here nor there. That's like me saying I haven't been paid my wages so I'll just go and help myself at tesco's and not pay for my shopping. If you are no longer working for them then if it were me the gloves would be off. If however you want to try and keep things amicable you could always suggest they paid the debt in reasonable instalments.
            Is no longer here

            Comment


            • #7
              Recovering o/s debt

              Hi - I'm very green about the gills at this sort of thing. So help is definately needed!!!

              I have just worked 3 years as an owner driver for a company. However, i have had to stop due to cash flow issues. In APril this year, one of the companies they sub contracted into went bust costing them a substantial sum of money. All the subbies who worked for them had to "put our monies owed on hold" subject to them getting any back.

              I no longer work for the company in question and am owed 4500 quid from this period.

              I have re-issued invoices and, given that they were originally due in April, i gave them till tomorrow to respond with their intention/ non-intention to pay. I also offered a split payment option to them of 2400 and 2100 over the next 28days.

              My thoughts are to issue an LBA tomorrow giving 7 days to pay in full and then issue a statuatory demand. Obviously , as i have never done anything like this before, i need to be crystal clear on my steps.

              Can i issue a stat demand for 4.5k or does it have to be court procedures?

              Can you please guide me in which direction you feel i should go with this.
              The people in question have a real "stuff him" mentality and if they think i'll go away, they will ignore me. i must get this money back , even if only as a matter of principle!!!

              thanks in advance

              Comment


              • #8
                Re: Recovering o/s debt

                Can someone on team merge this with original thread please?

                Help!! How do i recover this debt? - Legal Beagles
                Is no longer here

                Comment


                • #9
                  Re: Help!! How do i recover this debt?

                  Do the company actually have the money?

                  Comment


                  • #10
                    Re: Help!! How do i recover this debt?

                    The company is perfectly financially stable. operate a 4m a yr turnover on a 27k o/draft so no probs there. Just a husband and wife team although they are Ltd

                    i was in a managerial role within the co as well as a subbie so i know everything there is to know about them.

                    one other question is re the email - is an email legally binding or should i send a hard copy as well? Reason i haven't already is i believe they wouldnt sign for it

                    regards

                    Comment


                    • #11
                      Re: Help!! How do i recover this debt?

                      If they won't sign for a letter then send the invoices in a box by recorded parcel using return address of someone else they don't know..... possibly a friend?
                      Did they just change company name or wind the other company up and start a fresh?
                      If they managed to get you all to put your monies owed on hold, did they do this to avoid bankruptcy?
                      As this I believe would have precluded them from running a new LTD. company?
                      Seems like you may have legal recourse...... but need to get someone on here with legal experience....
                      I am just adding my thoughts as I am not in any way legally trained....
                      Good luck with this, I will watch your thread to see what advice anyone can give...
                      Russ
                      Last edited by veilside01702; 23rd October 2009, 13:07:PM. Reason: missed out word

                      Comment


                      • #12
                        Re: Help!! How do i recover this debt?

                        There is no need to mess around with parcels from other people's addresses. CPR 6.3 is quite clear on service of documents.

                        Send them a Letter Before Action and if they fail to pay after the expiry of the deadline you include in that letter, take action. Either a court claim or a Statutory Demand, but be sure of your case if you issue a Statutory Demand. If there is any dispute as to the validity of the alleged debt, then issuing a Statutory Demand can backfire on you quite spectacularly.

                        It is a well settled principle of law that a petition founded on a disputed debt should be dismissed by the Court. The test often applied is whether the debt is disputed in good faith and on substantial grounds. If this is the case, the petition will be dismissed as of right because the petitioner will not be a creditor with the standing to present a petition. Such petitions are normally treated with great caution by those receiving one, but should also be treated thus by those issuing due to the serious consequences of a wrongly issued petition which may result in an injunction against you, the issuer and a sizeable order for costs.


                        Comment


                        • #13
                          Re: Help!! How do i recover this debt?

                          Sorry Cetelco, just my devious side coming out without the legal understanding of CPR....
                          Sorry for that stunner1901.....
                          Russ

                          Comment


                          • #14
                            Re: Help!! How do i recover this debt?

                            Hi thanks guys

                            I have had a development just, but to clarify earlier points 1st

                            Company A went bust owing company B approx 200k. company B owed me and a few others various amounts.

                            Co B didnt put on hold to avoid bankruptcy merely because their attitude is "you'll either accept it or go!! Your call!!

                            Thats what we're dealing with

                            I have had a reply to wednesdays email (invoice attached, asking for confirmation, offering split payment)

                            Basically the reply is "what you talking about, we owe you nothing, you were paid cash coz you didnt have bank account"

                            They are obviously going to change their cash book to show that i've been paid. I have said if you are prepared to lie in court so be it

                            I do know somebody else who was paid into the bank and is in the same situation as me.

                            I cannot prove that i haven't been paid and as said i believe they will manipulate their books to show i have been

                            Where next??

                            I presume this constitutes a dispute situation so a stat demand is out of question?

                            Look forward to next advice

                            regards

                            Comment


                            • #15
                              Re: Help!! How do i recover this debt?

                              Well they may well change their cash book but that would still have to reconcile with their bank statements, purchase ledger etc. ie they would have to prove that they got the cash out of the bank to pay you.
                              Is no longer here

                              Comment

                              View our Terms and Conditions

                              LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

                              If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


                              If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.

                              Announcement

                              Collapse

                              Welcome to LegalBeagles


                              Donate with PayPal button

                              LegalBeagles is a free forum, founded in May 2007, providing legal guidance and support to consumers and SME's across a range of legal areas.

                              See more
                              See less

                              Court Claim ?

                              Guides and Letters
                              Loading...



                              Search and Compare fixed fee legal services and find a solicitor near you.

                              Find a Law Firm


                              Working...
                              X