Owed money by builder. Best course of action?
Discussion
Owed a significant but not dire amount of $ by a builder I've done work for, for over a year now.
He has money but it's (apparently) tied up in an investment property he can't sell, and nothing liquid.
Little in the way of paperwork, contracts etc it was more job+bill. He's not someone who sets out to knock just his biz terribly. He also owes others, Inc friends who loaned him but another subbie a more significant amount, probably looking towards six figures combined, who the same as me weren't willing debtors.
We chase but just get "soon, soon, I'll have it soon, just sit tight" and TBH I don't disbelieve his intent but if I had a penny for every businessman that never intended to knock anyone right up until it was out of his hands and he did I'd be too wealthy to care.
Other subbie sounding desperate and talking like he wants to escalate, best thing for me is probably sit tight but how long do you go on for, plus if this is happening its a queue i want to be at the front of, so if we decide to do something what's the best course of action, what's the person we need to be speaking too?
I'm guessing someone who can quietly sniff around his finances first and give us some kind of an idea of whats possible, how protected anything he has may be? I'm aware you can be quite "clever" with ltd cos etc but I'm also sure hes got himself here through stupidity rather than intent.
He has money but it's (apparently) tied up in an investment property he can't sell, and nothing liquid.
Little in the way of paperwork, contracts etc it was more job+bill. He's not someone who sets out to knock just his biz terribly. He also owes others, Inc friends who loaned him but another subbie a more significant amount, probably looking towards six figures combined, who the same as me weren't willing debtors.
We chase but just get "soon, soon, I'll have it soon, just sit tight" and TBH I don't disbelieve his intent but if I had a penny for every businessman that never intended to knock anyone right up until it was out of his hands and he did I'd be too wealthy to care.
Other subbie sounding desperate and talking like he wants to escalate, best thing for me is probably sit tight but how long do you go on for, plus if this is happening its a queue i want to be at the front of, so if we decide to do something what's the best course of action, what's the person we need to be speaking too?
I'm guessing someone who can quietly sniff around his finances first and give us some kind of an idea of whats possible, how protected anything he has may be? I'm aware you can be quite "clever" with ltd cos etc but I'm also sure hes got himself here through stupidity rather than intent.
Teddy Lop said:
Owed a significant but not dire amount of $ by a builder I've done work for, for over a year now.
He has money but it's (apparently) tied up in an investment property he can't sell, and nothing liquid.
Little in the way of paperwork, contracts etc it was more job+bill. He's not someone who sets out to knock just his biz terribly. He also owes others, Inc friends who loaned him but another subbie a more significant amount, probably looking towards six figures combined, who the same as me weren't willing debtors.
We chase but just get "soon, soon, I'll have it soon, just sit tight" and TBH I don't disbelieve his intent but if I had a penny for every businessman that never intended to knock anyone right up until it was out of his hands and he did I'd be too wealthy to care.
Other subbie sounding desperate and talking like he wants to escalate, best thing for me is probably sit tight but how long do you go on for, plus if this is happening its a queue i want to be at the front of, so if we decide to do something what's the best course of action, what's the person we need to be speaking too?
I'm guessing someone who can quietly sniff around his finances first and give us some kind of an idea of whats possible, how protected anything he has may be? I'm aware you can be quite "clever" with ltd cos etc but I'm also sure hes got himself here through stupidity rather than intent.
Kneecaps.He has money but it's (apparently) tied up in an investment property he can't sell, and nothing liquid.
Little in the way of paperwork, contracts etc it was more job+bill. He's not someone who sets out to knock just his biz terribly. He also owes others, Inc friends who loaned him but another subbie a more significant amount, probably looking towards six figures combined, who the same as me weren't willing debtors.
We chase but just get "soon, soon, I'll have it soon, just sit tight" and TBH I don't disbelieve his intent but if I had a penny for every businessman that never intended to knock anyone right up until it was out of his hands and he did I'd be too wealthy to care.
Other subbie sounding desperate and talking like he wants to escalate, best thing for me is probably sit tight but how long do you go on for, plus if this is happening its a queue i want to be at the front of, so if we decide to do something what's the best course of action, what's the person we need to be speaking too?
I'm guessing someone who can quietly sniff around his finances first and give us some kind of an idea of whats possible, how protected anything he has may be? I'm aware you can be quite "clever" with ltd cos etc but I'm also sure hes got himself here through stupidity rather than intent.
Is he a sole trader or Ltd. Are you sole trader or Ltd? Just make sure the right legal entity is suing the right legal entity.
If he's Ltd, remind him in the letter before action, that it's a criminal offence for a director to knowingly trade when the Ltd company isn't solvent.
In future you might want to do your contracts via an escow account. And never get burnt again.
If he's Ltd, remind him in the letter before action, that it's a criminal offence for a director to knowingly trade when the Ltd company isn't solvent.
In future you might want to do your contracts via an escow account. And never get burnt again.
Pit Pony said:
Is he a sole trader or Ltd. Are you sole trader or Ltd? Just make sure the right legal entity is suing the right legal entity.
If he's Ltd, remind him in the letter before action, that it's a criminal offence for a director to knowingly trade when the Ltd company isn't solvent.
In future you might want to do your contracts via an escow account. And never get burnt again.
If he is a Ltd then you can check the current status of the Ltd on companies house, this may give you an idea of his solvency, if he has completed his company returns in good time, his previous profit loss status, and could indicate his turnover/profit position.If he's Ltd, remind him in the letter before action, that it's a criminal offence for a director to knowingly trade when the Ltd company isn't solvent.
In future you might want to do your contracts via an escow account. And never get burnt again.
If you can prove the debt, it's over £2K - invoice etc - and you think it's going to go sour on you, then give these guys a call https://cobrafinancial.co.uk/
We used them with great success for a commercial debt to my wife (sole trader). It did cost us Cobras fees, but way better than f'all.
We used them with great success for a commercial debt to my wife (sole trader). It did cost us Cobras fees, but way better than f'all.
Just send a demand for payment within 7 days, copy invoices etc, then if nothing back go to court. If you can prove the debt to court, they will find in your favour and issue a demand whihc if he doesnt pay will mean he can be petitioned for bankruptcy / winding up order depending on his status. But if it is a limited company which owes you, you need to check what assets etc it may have. Remember, if wound up all the company's liabilities come into it, not just yours.
If he is a sole trader, it will be a bankruptcy, and his personal assets will be up for grabs, but again, all his personal debts including yours come into the claims.
I think your debt claim has to be over 750 quid to petition, but will include previous court costs etc that the court may add to the claim against him etc.
No one needs a year to pay, if he's not paid up yet, you aint getting it without playing hardball. But law should be on your side.
If he is a sole trader, it will be a bankruptcy, and his personal assets will be up for grabs, but again, all his personal debts including yours come into the claims.
I think your debt claim has to be over 750 quid to petition, but will include previous court costs etc that the court may add to the claim against him etc.
No one needs a year to pay, if he's not paid up yet, you aint getting it without playing hardball. But law should be on your side.
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