Debt recovery, should I accept this ?

[jaydee]

A sole-trader is in arrears to me for costs associated with a training day. He is intending to try and trade his way out of present difficulties, which arrise from a major plc reneging on payment to him (I have confirmed this is true). I am reluctant to take him to court and he is offering to repay 5% of the balance pcm with interest which I am reasonably happy with, but my question is: am I being too soft ? I suspect if I take him to court I will get an attachment of earnings order from his day job, rather than the full sum, so I will be no better off financially, but will this serve to guarantee my being paid or simply reduce further the chances of getting all the money back by pushing him towards bankruptcy ?
My accountant favours the court approach as he holds the view that a court would favour full payment with the threat of confiscation of property, but this seems exceedingly unlikely to me

>>> Edited by jaydee on Thursday 15th May 14:59

[kend]

I would accept the monthly repayments if you think you can trust him, this way you will still retain the option of court action at a later date. As you state court action may push him to go bankrupt.
All IMHO
Ken

[M@H]

I'd go with the repayments.. ..you can always go for court if it doesnt work out.. ..we all need a little help sometimes

Matt.

[jaydee]

That was my line of thought. Will I compromise my ability to take legal recourse if I accept monthly payments now ?

[M@H]

jaydee said: That was my line of thought. Will I compromise my ability to take legal recourse if I accept monthly payments now ?

No... draw up a repayment plan based on what you are thinking about (the 5%) and if he renaiges on that then you can go to court on that basis..
Cheers,
Matt.

[Davel]

Take the offer of payments and put the agreement in writing and stating that you reserve the right to take action and seek costs if he is unable to keep up with the payments. Ask him to countersign if you can.

You may win in the courts but that doesn't always guarantee that you'll get the money and you could end up with considerable costs.

Best to keep it amicable if you possibly can.

Good luck.

[jaydee]

Thanks all (why the Davel ) I've just spoken to him and he's happy to pay what he can now and set up monthly repayments with a written contract for these. He seems to be doing whatever he can in the circs and I'm very happy with that, I just cannot afford to let the money go at the moment

[ultimapaul]

It's always the PLC's that stuff the little guy's .... who then have to deal with the fallout

Paul

[bif]

Take the monthly payment by standing order and signed agreement, that way you get your money, do the guy a favour, and probably get future business from him and his pals when his situation improves / changes, after all, what would YOU like to happen if the shoe were on the other foot !