Recovering debt from contractor
Discussion
Has anyone any experience recovering debt for work performed on small contract basis?
I have been reading up a fair bit on statutory demands and Money Claim Online. Is this the way to go or are private debt recovery agencies worth using?
All relates to one employer/contractor. Full record of invoices and all debts acknowledged by other party. Some attempt at payment schedule was proposed but has never been adhered to.
I was able to recover around 10% claiming payment in kind by keeping some equipment. The value of this was again agreed and fully documented.
I have been reading up a fair bit on statutory demands and Money Claim Online. Is this the way to go or are private debt recovery agencies worth using?
All relates to one employer/contractor. Full record of invoices and all debts acknowledged by other party. Some attempt at payment schedule was proposed but has never been adhered to.
I was able to recover around 10% claiming payment in kind by keeping some equipment. The value of this was again agreed and fully documented.
It pays to act quickly and get a solicitor involved. Depending upon the amounts (is it less than £5K) you end up in small claims (no costs recoverable) or go the big boys. No guarentee you will win of course, but as long as there is an agreed contract you've a very good case. Not many people like to go to court, so just like playing poker you'll call their bluff by getting the solicitor involved and sending letters.
I have a lot of experience with this, unfortunately.
It appears that he is not paying you becasue he hasn't got the money?
In those cases a CCJ is utterly pointless becasue it doesn't change thier financial circumstances.
Similarly, emplying debt recovery agencies are equally pointless, plus it costs.
The best thing to do,by far, is to issue a bankruptcy petition (or a winding up petition depending on whether it is a company or individual).
When you do this, you have to pay an initial deposit (about £1000) to the courts but this is refundable if you don't go ahead.
THis is the only way you will know for sure whether they can pay you. If you issue one of these-whoever the debtor is will try everything they possibly can to pay you ahead of everyone else (including themselves) and if they still don't, you know they are so f
ked that a CCJ wouldn't have done you any good anyway
It appears that he is not paying you becasue he hasn't got the money?
In those cases a CCJ is utterly pointless becasue it doesn't change thier financial circumstances.
Similarly, emplying debt recovery agencies are equally pointless, plus it costs.
The best thing to do,by far, is to issue a bankruptcy petition (or a winding up petition depending on whether it is a company or individual).
When you do this, you have to pay an initial deposit (about £1000) to the courts but this is refundable if you don't go ahead.
THis is the only way you will know for sure whether they can pay you. If you issue one of these-whoever the debtor is will try everything they possibly can to pay you ahead of everyone else (including themselves) and if they still don't, you know they are so f
ked that a CCJ wouldn't have done you any good anywayBSR
Has he got the money? Well he may not have the cash but he most certainly has assets to the value.
The figure due is approx £12k
I know of equipment to the value of around £10k that he has and his house must be worth over £500k. How much of that is mortgaged I don't know.
The scenario is terrible as he has been a friend for over 8 years but I am now fed up with the constant excuses, delaying tactics and worst of all his continued spending on his own lifestyle.
Has he got the money? Well he may not have the cash but he most certainly has assets to the value.
The figure due is approx £12k
I know of equipment to the value of around £10k that he has and his house must be worth over £500k. How much of that is mortgaged I don't know.
The scenario is terrible as he has been a friend for over 8 years but I am now fed up with the constant excuses, delaying tactics and worst of all his continued spending on his own lifestyle.
I feel for you.
Provided you have the paperwork to back up the debt (i.e. he can't cry 'dispute') then I definitely recommend the threat of bankruptcy/winding up
In those kind of situations a £5 letter from our solicitor threatening it gets us paid in 70% of cases where all else has failed (i.e. your situation). You don't normally have to go any further than the mere letter before action
A threat of of a CCJ tends to work about a third as much because it doesn't have the panic factor.
Good luck. That's an awful lot of money to be owed by a mate
Provided you have the paperwork to back up the debt (i.e. he can't cry 'dispute') then I definitely recommend the threat of bankruptcy/winding up
In those kind of situations a £5 letter from our solicitor threatening it gets us paid in 70% of cases where all else has failed (i.e. your situation). You don't normally have to go any further than the mere letter before action
A threat of of a CCJ tends to work about a third as much because it doesn't have the panic factor.
Good luck. That's an awful lot of money to be owed by a mate
KB_S1 said:
BSR
Has he got the money? Well he may not have the cash but he most certainly has assets to the value.
The figure due is approx £12k
I know of equipment to the value of around £10k that he has and his house must be worth over £500k. How much of that is mortgaged I don't know.
The scenario is terrible as he has been a friend for over 8 years but I am now fed up with the constant excuses, delaying tactics and worst of all his continued spending on his own lifestyle.
If the figure is £12K then it's deffo not small claims, which actually helps. Has he got the money? Well he may not have the cash but he most certainly has assets to the value.
The figure due is approx £12k
I know of equipment to the value of around £10k that he has and his house must be worth over £500k. How much of that is mortgaged I don't know.
The scenario is terrible as he has been a friend for over 8 years but I am now fed up with the constant excuses, delaying tactics and worst of all his continued spending on his own lifestyle.
Either the winding up order or go through the courts. I've used the courts method to success every time and never actually had to get my suit dry cleaned! Expect to lose a grand, 1500 to the legal team but they never fail unless you don't have the paper work to back it up.
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