CCJ but - Will he ever get paid.
Discussion
My brother is concidering taking someone to court as they owe him money for a loan, its about £15,000.
The person who owes the money is the 50% owner/director of a LTD company, he pays himself minimum wage and the 2 partners just take cash/profits out of the bank as drawings. The company takes about £60,000 pa in profits.
If my brother were to get a CCJ how would he ever get his money, the guy is quite slippery and has no assets in his name apart from the LTD company. The Company is a shop but only holds about £2,000 in assets/goods in the shop.
I know a LTD company limits liabilities to the company but can a personal CCJ be forced onto a LTD company?
If this is the case we suspect that he will just sign over his 50% to someone else to avoid paying.
Any advice welcome.
The person who owes the money is the 50% owner/director of a LTD company, he pays himself minimum wage and the 2 partners just take cash/profits out of the bank as drawings. The company takes about £60,000 pa in profits.
If my brother were to get a CCJ how would he ever get his money, the guy is quite slippery and has no assets in his name apart from the LTD company. The Company is a shop but only holds about £2,000 in assets/goods in the shop.
I know a LTD company limits liabilities to the company but can a personal CCJ be forced onto a LTD company?
If this is the case we suspect that he will just sign over his 50% to someone else to avoid paying.
Any advice welcome.
syl said:
He has shares in the company. Shares are assets which he can be made to sell. He can also be made bankrupt, which will stop him being the director of a company.
He could just sell them for cash and declare £500 sale before he is forced or even sell them for a pound to someone he knows.Making him bankrupt I assume he will never get his money back.
Does he own other assets. e.g. a house? It is difficult to know what the equity in the property is but for someone who is a company director and who has real assets being bankrupt can be quite tiresome. The easiest way to accelerate the process is not to go for a CCJ at all but present a statutory deman for the debt and then present a bankruptcy petition. If he has money, a stat deman should concentrate his mind. If the debt is disputed that route wont work though.
williaa68 said:
Does he own other assets. e.g. a house? It is difficult to know what the equity in the property is but for someone who is a company director and who has real assets being bankrupt can be quite tiresome. The easiest way to accelerate the process is not to go for a CCJ at all but present a statutory deman for the debt and then present a bankruptcy petition. If he has money, a stat deman should concentrate his mind. If the debt is disputed that route wont work though.
He has no house, no assets in his name just the 50% of the business in his namepatientadvice said:
The person who owes the money is the 50% owner/director of a LTD company, he pays himself minimum wage and the 2 partners just take cash/profits out of the bank as drawings. The company takes about £60,000 pa in profits.
Something not correct here. If it is a limited company they cannot take 'drawings', this is for a sole trader or partnership only. Also the 2 'partners' are not partners but would be shareholders if it is a limited company. Whole different ballgame if it is a partnership though.Psycho Warren said:
If the company owes the debt and he wants to be slippery, it might suddenly cease trading a short while before it goes to court and open up under a different name.
If he wants to be slippery then he may just refuse to pay whether it's personal or company. If he closes the company down he'll need to pay a liquidator and his business partner will need to agree to any course of action. If it's personal then eventually he can be made bankrupt but there no guarantee of getting that cost back or his loan. The Official Receiver will take roughly the first £10k available in fees anyway.I'd suggest just getting judgement so the chap knows he can ignore it if he likes but it won't go away. If he wants to or thinks there are assets around he can move it into the High Court and send the enforcement officers (new name for bailiffs) in.
The guy might one day need to do something that a CCJ will create problems with so it could be handy to have. If the chap owns or buys a house the CCJ can then be used to get a charging order to secure it on the house.
patientadvice said:
If my brother were to get a CCJ how would he ever get his money, the guy is quite slippery and has no assets in his name apart from the LTD company. The Company is a shop but only holds about £2,000 in assets/goods in the shop.
hutchst said:
patientadvice said:
He has no house, no assets in his name just the 50% of the business in his name
You seem very sure of that.https://www.justice.gov.uk/courts/procedure-rules/...
Omitting things on the usual income and expenditure form is one thing.
It requires a bigger set of cojones to lie on oath in court.
It's up to the creditor to decide whether to go for it.
If someone screwed me over for £15k* I would.
If nothing else, to cause him the maximum hassle.
He can't be a director of a limited comapny while he is an undischrged bankrupt.
https://www.handpickedaccountants.co.uk/articles/i...
* That said, if I knew someone was that slippery I doubt I would have made the loan in the first place.
FN2TypeR said:
hutchst said:
patientadvice said:
He has no house, no assets in his name just the 50% of the business in his name
You seem very sure of that.megaphone said:
What sort of 'contract' does your brother have with the debtor? A handshake? Or something written? How was the loan made, cash or different?
My brother has a written signed contract confirming the loan, not much detail in it I think. Some money was bank transfer and some was cash, he can prove this money was in his bank.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff