Contract Law / Legal Claim / Responsibilities
Discussion
An interesting one, which I'm trying to navigate to get an 'outcome'. Firstly, a tale of woe and naivety: We needed a joiner to complete some work, and someone we use regularly referred us to a local person/company who he was now subbing for. Project cost ~14k.
Shared plans, designs, agreed on quote, and paid initial chunk to secure a slot for the work to go ahead. This would have been late 2023, with a vew to completing it before Xmas 2023. Amount paid approx £7k, to Ltd Company A. Sole Director, 'MP'.
Fast forward to early 2024, the work didn't even start, let alone get completed on schedule. Rumours around (confirmed by 'MP') that his company was in trouble. Subcontractor who referred us wasn't being paid, Joiner having to leave his workshop. Overstretched himself and hit cash-flow issues. Massively apologetic, but stated (on record) that he didn't want to leave us in the lurch and had every intention of completing jobs for anyone affected. We took him at his word, and kept in loose touch during early/mid 2024.
August '24, we bumped into his wife (actually at her place of work) and she said, "Oh, he's going to be in touch very shortly! He's able to start your job very soon..." It seemed that everything was finally going to be sorted. He duly got in touch, made some arrangements, and we (naively!) handed over the next installment. This was paid to his 'new' company, Ltd Company B. Sole Director 'MP' still. He did actually turn up and do a few things (essentially fitted some softwood framing, and reused some of our original/saved skirting board to basically create a 'base' (this is for a huge, high spec built-in set of units).
Basically he did very little, and needed constant prompting. Full of excuses. Mental healt issues, you name it - but remained patient with him, but summer turned to autumn, turned to winter, and Xmas '24 came and went as well. We regrouped in January and gave him a final ultimatum - repay or complete, and he did agree to a final deadline (21st March 2025). 17th March he confirmed (WhatsApp) "I am looking to be with you on Wednesday/Thursday to be the remaining cabinets installed") but on Tuesday 18th March, suddenly another 'delay' - this time, he's managed to get a hand in one of his machines and damaged a finger (!), so the final final deadline was no longer going to be possible. That was the final straw. We were £12k in, had barely nothing in place (some softwood battening, some re-used skirting board, plus 4 apparently poorly made base cabinets which he had to chop up and remake onsite (with our tools!) as he'd made them the wrong height. Shoddy work, almost 18 months of delays, it was finally time to draw a line under it.
The unit has now been properly built (all bar a little snagging to finish) by another joiner. He took everything out and started again, doing it properly - and confirmed even the base that had been put in by 'MP' wasn't square enough to work from.
So here's where things get 'interesting'. The unit was eventually completed for nearer £10k, and we're delighted with it. 'MP' through his 2 companies has had £12k from us. In a perfect world, he'd repay the £12k - but that's not happening. I'd be delighted if I could get back the £10k we had to get someone else to complete the job - that way we're not out of pocket. At worst, I'd almost be prepared to settle for getting the 2nd payment back (£5k) paid to Ltd Company B. The companies involved complicate things.
Technically, the initial payment went to Ltd Company A and that has zero assets and a pile of debt, so it isn't worth chasing. It is currently being actively prevented from being struck off - presumably he's trying to burn it and other people won't let him. He then gave his personal assurance that he would complete the work and see it through. So, irrespective of where the money went, he has (at least in my layman's mind) assummed responsibility for fulfilling that initial contract. His later conduct speaks to this - he held us to the same payment plan (50%, 40%, 10%) - hence asking for the next '40%) - with that 40% (~£5k) being paid to Ltd Company A. Again, he has given continued personal assurances that he would complete the work - so although he is working through these companies, he is acting outside of that relationship.
I do not want to name Ltd Company A on legal action, as it is pointless. I don't see much point naming Ltd Company B either, as I doubt it is trading. He does have personal assets (including a mortgaged property - and claims to own his tools and substantial joinery equipment 'personally') so that is the angle I need to work on.
Almost all conversation has been via WhatsApp so I have a clear and unequivocal timeline of lies, delays and everything else. I need to decide whether to try a 'cheap' MCOL filing for an amount under the threshold as a pragmatic step, or whether to press home what I believe is the case here - that 'MP' has stepped outside of the protection offered by Ltd Company law by giving clear personal assurances and 'guarantees' that the work his company(s) couldn't fulfil. By promising to fulfil the obligation personally, I believe he's made himself personally liable.
What do the learned minds of PH think, and can someone recommend a solicitor I could have a quick chat with / share the timeline with to get some proper sound advice?
Shared plans, designs, agreed on quote, and paid initial chunk to secure a slot for the work to go ahead. This would have been late 2023, with a vew to completing it before Xmas 2023. Amount paid approx £7k, to Ltd Company A. Sole Director, 'MP'.
Fast forward to early 2024, the work didn't even start, let alone get completed on schedule. Rumours around (confirmed by 'MP') that his company was in trouble. Subcontractor who referred us wasn't being paid, Joiner having to leave his workshop. Overstretched himself and hit cash-flow issues. Massively apologetic, but stated (on record) that he didn't want to leave us in the lurch and had every intention of completing jobs for anyone affected. We took him at his word, and kept in loose touch during early/mid 2024.
August '24, we bumped into his wife (actually at her place of work) and she said, "Oh, he's going to be in touch very shortly! He's able to start your job very soon..." It seemed that everything was finally going to be sorted. He duly got in touch, made some arrangements, and we (naively!) handed over the next installment. This was paid to his 'new' company, Ltd Company B. Sole Director 'MP' still. He did actually turn up and do a few things (essentially fitted some softwood framing, and reused some of our original/saved skirting board to basically create a 'base' (this is for a huge, high spec built-in set of units).
Basically he did very little, and needed constant prompting. Full of excuses. Mental healt issues, you name it - but remained patient with him, but summer turned to autumn, turned to winter, and Xmas '24 came and went as well. We regrouped in January and gave him a final ultimatum - repay or complete, and he did agree to a final deadline (21st March 2025). 17th March he confirmed (WhatsApp) "I am looking to be with you on Wednesday/Thursday to be the remaining cabinets installed") but on Tuesday 18th March, suddenly another 'delay' - this time, he's managed to get a hand in one of his machines and damaged a finger (!), so the final final deadline was no longer going to be possible. That was the final straw. We were £12k in, had barely nothing in place (some softwood battening, some re-used skirting board, plus 4 apparently poorly made base cabinets which he had to chop up and remake onsite (with our tools!) as he'd made them the wrong height. Shoddy work, almost 18 months of delays, it was finally time to draw a line under it.
The unit has now been properly built (all bar a little snagging to finish) by another joiner. He took everything out and started again, doing it properly - and confirmed even the base that had been put in by 'MP' wasn't square enough to work from.
So here's where things get 'interesting'. The unit was eventually completed for nearer £10k, and we're delighted with it. 'MP' through his 2 companies has had £12k from us. In a perfect world, he'd repay the £12k - but that's not happening. I'd be delighted if I could get back the £10k we had to get someone else to complete the job - that way we're not out of pocket. At worst, I'd almost be prepared to settle for getting the 2nd payment back (£5k) paid to Ltd Company B. The companies involved complicate things.
Technically, the initial payment went to Ltd Company A and that has zero assets and a pile of debt, so it isn't worth chasing. It is currently being actively prevented from being struck off - presumably he's trying to burn it and other people won't let him. He then gave his personal assurance that he would complete the work and see it through. So, irrespective of where the money went, he has (at least in my layman's mind) assummed responsibility for fulfilling that initial contract. His later conduct speaks to this - he held us to the same payment plan (50%, 40%, 10%) - hence asking for the next '40%) - with that 40% (~£5k) being paid to Ltd Company A. Again, he has given continued personal assurances that he would complete the work - so although he is working through these companies, he is acting outside of that relationship.
I do not want to name Ltd Company A on legal action, as it is pointless. I don't see much point naming Ltd Company B either, as I doubt it is trading. He does have personal assets (including a mortgaged property - and claims to own his tools and substantial joinery equipment 'personally') so that is the angle I need to work on.
Almost all conversation has been via WhatsApp so I have a clear and unequivocal timeline of lies, delays and everything else. I need to decide whether to try a 'cheap' MCOL filing for an amount under the threshold as a pragmatic step, or whether to press home what I believe is the case here - that 'MP' has stepped outside of the protection offered by Ltd Company law by giving clear personal assurances and 'guarantees' that the work his company(s) couldn't fulfil. By promising to fulfil the obligation personally, I believe he's made himself personally liable.
What do the learned minds of PH think, and can someone recommend a solicitor I could have a quick chat with / share the timeline with to get some proper sound advice?
timetex said:
An interesting one, which I'm trying to navigate to get an 'outcome'. Firstly, a tale of woe and naivety: We needed a joiner to complete some work, and someone we use regularly referred us to a local person/company who he was now subbing for. Project cost ~14k.
Shared plans, designs, agreed on quote, and paid initial chunk to secure a slot for the work to go ahead. This would have been late 2023, with a vew to completing it before Xmas 2023. Amount paid approx £7k, to Ltd Company A. Sole Director, 'MP'.
Fast forward to early 2024, the work didn't even start, let alone get completed on schedule. Rumours around (confirmed by 'MP') that his company was in trouble. Subcontractor who referred us wasn't being paid, Joiner having to leave his workshop. Overstretched himself and hit cash-flow issues. Massively apologetic, but stated (on record) that he didn't want to leave us in the lurch and had every intention of completing jobs for anyone affected. We took him at his word, and kept in loose touch during early/mid 2024.
August '24, we bumped into his wife (actually at her place of work) and she said, "Oh, he's going to be in touch very shortly! He's able to start your job very soon..." It seemed that everything was finally going to be sorted. He duly got in touch, made some arrangements, and we (naively!) handed over the next installment. This was paid to his 'new' company, Ltd Company B. Sole Director 'MP' still. He did actually turn up and do a few things (essentially fitted some softwood framing, and reused some of our original/saved skirting board to basically create a 'base' (this is for a huge, high spec built-in set of units).
Basically he did very little, and needed constant prompting. Full of excuses. Mental healt issues, you name it - but remained patient with him, but summer turned to autumn, turned to winter, and Xmas '24 came and went as well. We regrouped in January and gave him a final ultimatum - repay or complete, and he did agree to a final deadline (21st March 2025). 17th March he confirmed (WhatsApp) "I am looking to be with you on Wednesday/Thursday to be the remaining cabinets installed") but on Tuesday 18th March, suddenly another 'delay' - this time, he's managed to get a hand in one of his machines and damaged a finger (!), so the final final deadline was no longer going to be possible. That was the final straw. We were £12k in, had barely nothing in place (some softwood battening, some re-used skirting board, plus 4 apparently poorly made base cabinets which he had to chop up and remake onsite (with our tools!) as he'd made them the wrong height. Shoddy work, almost 18 months of delays, it was finally time to draw a line under it.
The unit has now been properly built (all bar a little snagging to finish) by another joiner. He took everything out and started again, doing it properly - and confirmed even the base that had been put in by 'MP' wasn't square enough to work from.
So here's where things get 'interesting'. The unit was eventually completed for nearer £10k, and we're delighted with it. 'MP' through his 2 companies has had £12k from us. In a perfect world, he'd repay the £12k - but that's not happening. I'd be delighted if I could get back the £10k we had to get someone else to complete the job - that way we're not out of pocket. At worst, I'd almost be prepared to settle for getting the 2nd payment back (£5k) paid to Ltd Company B. The companies involved complicate things.
Technically, the initial payment went to Ltd Company A and that has zero assets and a pile of debt, so it isn't worth chasing. It is currently being actively prevented from being struck off - presumably he's trying to burn it and other people won't let him. He then gave his personal assurance that he would complete the work and see it through. So, irrespective of where the money went, he has (at least in my layman's mind) assummed responsibility for fulfilling that initial contract. His later conduct speaks to this - he held us to the same payment plan (50%, 40%, 10%) - hence asking for the next '40%) - with that 40% (~£5k) being paid to Ltd Company A. Again, he has given continued personal assurances that he would complete the work - so although he is working through these companies, he is acting outside of that relationship.
I do not want to name Ltd Company A on legal action, as it is pointless. I don't see much point naming Ltd Company B either, as I doubt it is trading. He does have personal assets (including a mortgaged property - and claims to own his tools and substantial joinery equipment 'personally') so that is the angle I need to work on.
Almost all conversation has been via WhatsApp so I have a clear and unequivocal timeline of lies, delays and everything else. I need to decide whether to try a 'cheap' MCOL filing for an amount under the threshold as a pragmatic step, or whether to press home what I believe is the case here - that 'MP' has stepped outside of the protection offered by Ltd Company law by giving clear personal assurances and 'guarantees' that the work his company(s) couldn't fulfil. By promising to fulfil the obligation personally, I believe he's made himself personally liable.
What do the learned minds of PH think, and can someone recommend a solicitor I could have a quick chat with / share the timeline with to get some proper sound advice?
Sorry the hear of your frustrations. I make the assumption that you have no written contract of any kind? If not, in my view you have two possible actions:Shared plans, designs, agreed on quote, and paid initial chunk to secure a slot for the work to go ahead. This would have been late 2023, with a vew to completing it before Xmas 2023. Amount paid approx £7k, to Ltd Company A. Sole Director, 'MP'.
Fast forward to early 2024, the work didn't even start, let alone get completed on schedule. Rumours around (confirmed by 'MP') that his company was in trouble. Subcontractor who referred us wasn't being paid, Joiner having to leave his workshop. Overstretched himself and hit cash-flow issues. Massively apologetic, but stated (on record) that he didn't want to leave us in the lurch and had every intention of completing jobs for anyone affected. We took him at his word, and kept in loose touch during early/mid 2024.
August '24, we bumped into his wife (actually at her place of work) and she said, "Oh, he's going to be in touch very shortly! He's able to start your job very soon..." It seemed that everything was finally going to be sorted. He duly got in touch, made some arrangements, and we (naively!) handed over the next installment. This was paid to his 'new' company, Ltd Company B. Sole Director 'MP' still. He did actually turn up and do a few things (essentially fitted some softwood framing, and reused some of our original/saved skirting board to basically create a 'base' (this is for a huge, high spec built-in set of units).
Basically he did very little, and needed constant prompting. Full of excuses. Mental healt issues, you name it - but remained patient with him, but summer turned to autumn, turned to winter, and Xmas '24 came and went as well. We regrouped in January and gave him a final ultimatum - repay or complete, and he did agree to a final deadline (21st March 2025). 17th March he confirmed (WhatsApp) "I am looking to be with you on Wednesday/Thursday to be the remaining cabinets installed") but on Tuesday 18th March, suddenly another 'delay' - this time, he's managed to get a hand in one of his machines and damaged a finger (!), so the final final deadline was no longer going to be possible. That was the final straw. We were £12k in, had barely nothing in place (some softwood battening, some re-used skirting board, plus 4 apparently poorly made base cabinets which he had to chop up and remake onsite (with our tools!) as he'd made them the wrong height. Shoddy work, almost 18 months of delays, it was finally time to draw a line under it.
The unit has now been properly built (all bar a little snagging to finish) by another joiner. He took everything out and started again, doing it properly - and confirmed even the base that had been put in by 'MP' wasn't square enough to work from.
So here's where things get 'interesting'. The unit was eventually completed for nearer £10k, and we're delighted with it. 'MP' through his 2 companies has had £12k from us. In a perfect world, he'd repay the £12k - but that's not happening. I'd be delighted if I could get back the £10k we had to get someone else to complete the job - that way we're not out of pocket. At worst, I'd almost be prepared to settle for getting the 2nd payment back (£5k) paid to Ltd Company B. The companies involved complicate things.
Technically, the initial payment went to Ltd Company A and that has zero assets and a pile of debt, so it isn't worth chasing. It is currently being actively prevented from being struck off - presumably he's trying to burn it and other people won't let him. He then gave his personal assurance that he would complete the work and see it through. So, irrespective of where the money went, he has (at least in my layman's mind) assummed responsibility for fulfilling that initial contract. His later conduct speaks to this - he held us to the same payment plan (50%, 40%, 10%) - hence asking for the next '40%) - with that 40% (~£5k) being paid to Ltd Company A. Again, he has given continued personal assurances that he would complete the work - so although he is working through these companies, he is acting outside of that relationship.
I do not want to name Ltd Company A on legal action, as it is pointless. I don't see much point naming Ltd Company B either, as I doubt it is trading. He does have personal assets (including a mortgaged property - and claims to own his tools and substantial joinery equipment 'personally') so that is the angle I need to work on.
Almost all conversation has been via WhatsApp so I have a clear and unequivocal timeline of lies, delays and everything else. I need to decide whether to try a 'cheap' MCOL filing for an amount under the threshold as a pragmatic step, or whether to press home what I believe is the case here - that 'MP' has stepped outside of the protection offered by Ltd Company law by giving clear personal assurances and 'guarantees' that the work his company(s) couldn't fulfil. By promising to fulfil the obligation personally, I believe he's made himself personally liable.
What do the learned minds of PH think, and can someone recommend a solicitor I could have a quick chat with / share the timeline with to get some proper sound advice?
Make a claim against Company A for the initial payment, and
Make a claim against Company B for the second payment.
By your actions it would indicate these two companies are the contracting parties. Company A initially and Company B from the second payment.
Since these are actual limited companies listed on Companies House you do not really have recourse against the director personally, that is the whole point of incorporation.
In hindsight you were wrong to make any payment to Company B until 50% of the work was done, but, I am sure you already know that
timetex said:
What do the learned minds of PH think, and can someone recommend a solicitor I could have a quick chat with / share the timeline with to get some proper sound advice?
That you've got a right old pickle going on there and you need legal help to make any progress.Assuming there is no paperwork, then you have a job split between two independent companies with no terms and no way to determine the responsibilities of either in any methodical fashion.
On face value you can/should go after each company for the money you paid them. But you say that A has no money. It's likely that B has no money either.
You have four choices:
1 firmly ask the guy for your money back
2 start 2 MCOL processes, one with each company - probably long and chance of getting any money pretty low
3 get legal advice for a cleverer approach with the associated legal fees
4 write it off as a life lesson
The Ltd company shells will protect him. You have a claim against company A and a claim against company B. All you can do is persue the companies for repayment of those monies.
Sounds like A has greater liabilities than assets, so you can claim against them but it s very unlikely you ll get anything back.
Unfortunately, same probably goes for company B. I suspect there is more to it than cashflow - maybe a gambling issue. He s had £10k off you in 18 months with very little to show and with other creditors chasing A that s someone who is burning through money without working. He probably just showed some willing to start your job to get the second 40% payment and then disappear again.
Reality is that B probably has very little in it to chase after as well, and he ll probably try to close that down asap.
The fact he may have personal assets like a house is immaterial, as the point of a ltd company is to limit annd isolate the business liabilities.
By al means register a MCOL to turn up the heat on him and make yourself feel better, but I m afraid it s very unlikely you ll get any money back, from what you ve said.
Sounds like A has greater liabilities than assets, so you can claim against them but it s very unlikely you ll get anything back.
Unfortunately, same probably goes for company B. I suspect there is more to it than cashflow - maybe a gambling issue. He s had £10k off you in 18 months with very little to show and with other creditors chasing A that s someone who is burning through money without working. He probably just showed some willing to start your job to get the second 40% payment and then disappear again.
Reality is that B probably has very little in it to chase after as well, and he ll probably try to close that down asap.
The fact he may have personal assets like a house is immaterial, as the point of a ltd company is to limit annd isolate the business liabilities.
By al means register a MCOL to turn up the heat on him and make yourself feel better, but I m afraid it s very unlikely you ll get any money back, from what you ve said.
Thanks all for the replies so far. I could just write it off, but I'm not inclined to. For not much cost/hassle I could go up to £10k at MCOL.
I just wish I could prove that either company was insolvent at the time it actually took our money - as that would be clear cut on the Insolvency Act, and MP would then be personally liable. There are situations (and this is one) where the protection of a Ltd company can be breached and the directors found personally liable.
The same goes for a director who, when his company becomes insolvent, takes on personal responsibility for completing the project. I have multiple, clear and unambiguous written admissions by MP that he was personally assuming responsibility for completing the work.
“I am the man I said I am and I will complete this for you.”
(05/11/2024)
“I will make sure your project is completed to a high standard you and your home deserve.”
(13/02/2025)
“I will be with you on Monday to get all the base and start on lower cabinets and move from there…”
(05/11/2024)
“You are still my project… I haven’t used your money for creditors… I will try and get some photos of cabinets for you later today.”
(21/11/2024)
“I promise I haven’t failed to complete anything… I am one man… I will not stop now after nearly a year of hard work…”
(13/02/2025)
“I have said I will be finishing the project and I had the extra money as I have spent all my own money on the materials…”
(07/11/2024)
So this is where I think legal advice is needed (and would be beneficial) as I don't want him to have the 'out' of saying "debts die with the companies" when he has clearly assumed responsibility and induced an additional payment (to a company which doesn't actually form part of the initial contract) - and the one thing tying all of this together is him, personally.
I just wish I could prove that either company was insolvent at the time it actually took our money - as that would be clear cut on the Insolvency Act, and MP would then be personally liable. There are situations (and this is one) where the protection of a Ltd company can be breached and the directors found personally liable.
The same goes for a director who, when his company becomes insolvent, takes on personal responsibility for completing the project. I have multiple, clear and unambiguous written admissions by MP that he was personally assuming responsibility for completing the work.
“I am the man I said I am and I will complete this for you.”
(05/11/2024)
“I will make sure your project is completed to a high standard you and your home deserve.”
(13/02/2025)
“I will be with you on Monday to get all the base and start on lower cabinets and move from there…”
(05/11/2024)
“You are still my project… I haven’t used your money for creditors… I will try and get some photos of cabinets for you later today.”
(21/11/2024)
“I promise I haven’t failed to complete anything… I am one man… I will not stop now after nearly a year of hard work…”
(13/02/2025)
“I have said I will be finishing the project and I had the extra money as I have spent all my own money on the materials…”
(07/11/2024)
So this is where I think legal advice is needed (and would be beneficial) as I don't want him to have the 'out' of saying "debts die with the companies" when he has clearly assumed responsibility and induced an additional payment (to a company which doesn't actually form part of the initial contract) - and the one thing tying all of this together is him, personally.
The businesses will only have been insolvent if he was unable to deliver to contract within the cash flow available to him. Given that his main overheads are materials (and maybe a workshop) it’s likely that he could claim the business was solvent - theoretically he could source some materials (maybe with a personal cash loan to the business by borrowing against his house) and then just provide his own time to complete the work and justify payment/solvency.
Of course, he won’t want to do any of that, and we probably all know what his intentions were/are.
If you want to pursue the personal liability through the insolvency/personal guarantee angle, then professional legal advice would be required.
Of course, he won’t want to do any of that, and we probably all know what his intentions were/are.
If you want to pursue the personal liability through the insolvency/personal guarantee angle, then professional legal advice would be required.
Sorry for your lost £12k.
If you sue the companies you can easily spend more than £12k in legal costs to achieve judgment. Assuming success, your judgment debt will rank as an ordinary unsecured creditor...which in insolvency terms if both companies are liquidated means you are at the bottom of the pay out list. May be lucky to get pennies in the £1.
If the companies go bust, you can file a proof of debt form with the liquidator, thus avoid the costs of court action. Assuming the debt is admitted, you rank as ordinary unsecured creditor... see above (but you save costs of going through court).
If these are both one man contracting companies, and without surplus assets on the filed accounts, you must be sure the director is minted before spending several times £12k to prove Salomon v Salomon corporate persona should be pierced from fraudulent conduct or dishonestly accepting your funds without any intention of ever doing the work....just to recoup £12k less irrecoverable costs assessed on the standard basis or indemnity basis (ask Colleen Rooney how that works). If the director is not minted and liquid, you can spend all that money just to ultimately recover none back.
You can alternatively fund the liquidator to pursue the director, in which case I expect any insolvency practitioner to rinse you for several £12ks just to consider whether to bring wrongful/fraudulent trading/misfeasance claims and then more to go through court. The liquidator will still need the director to be minted and liquid in order to recover any money....and anything recovered pays the secured creditors first and only any surplus gets shared with ordinary unsecured creditors.
How upset with this guy do you feel??
If you sue the companies you can easily spend more than £12k in legal costs to achieve judgment. Assuming success, your judgment debt will rank as an ordinary unsecured creditor...which in insolvency terms if both companies are liquidated means you are at the bottom of the pay out list. May be lucky to get pennies in the £1.
If the companies go bust, you can file a proof of debt form with the liquidator, thus avoid the costs of court action. Assuming the debt is admitted, you rank as ordinary unsecured creditor... see above (but you save costs of going through court).
If these are both one man contracting companies, and without surplus assets on the filed accounts, you must be sure the director is minted before spending several times £12k to prove Salomon v Salomon corporate persona should be pierced from fraudulent conduct or dishonestly accepting your funds without any intention of ever doing the work....just to recoup £12k less irrecoverable costs assessed on the standard basis or indemnity basis (ask Colleen Rooney how that works). If the director is not minted and liquid, you can spend all that money just to ultimately recover none back.
You can alternatively fund the liquidator to pursue the director, in which case I expect any insolvency practitioner to rinse you for several £12ks just to consider whether to bring wrongful/fraudulent trading/misfeasance claims and then more to go through court. The liquidator will still need the director to be minted and liquid in order to recover any money....and anything recovered pays the secured creditors first and only any surplus gets shared with ordinary unsecured creditors.
How upset with this guy do you feel??
try speaking to these guys https://cfs-legal.co.uk/about-cobra/
If they think the debt is collectable they'll have a go. Worked for us.
If they think the debt is collectable they'll have a go. Worked for us.
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