Guy owes me ££ going bankrupt - what to do?
Discussion
A pair of builders owe me a few thousand quid. I just spoke to one who siad they are declaring themselves bankrupt etc. I know he has equity in his house, about £60k or so. When I asked "won't you need to sell the house" he said no.
So, do I file a claim against him now and risk getting pennies in the pound, or wait until he declares himself bankrupt and try to get a charge on the house?? The third option is to let it go, but I don't want to...
So, do I file a claim against him now and risk getting pennies in the pound, or wait until he declares himself bankrupt and try to get a charge on the house?? The third option is to let it go, but I don't want to...
Bankrupt = Liquidators get their fees, Revenue gets the rest. Creditors don't get a look in.
There is no concept, as far as I can see, of a fair share to all creditors because the damn professionals and Government get their slice before the rest is divvied up. If there's nothing left - there's nothing left.
If you think that doesn't sound terribly equitable - its not.
But that's life.
There is no concept, as far as I can see, of a fair share to all creditors because the damn professionals and Government get their slice before the rest is divvied up. If there's nothing left - there's nothing left.
If you think that doesn't sound terribly equitable - its not.
But that's life.
agree with above - get in there as quick as poss & file a claim. you can pretty much do it all online these days however it takes so bl**dy long for balifs to get in etc and if they go bankrupt and liquidators get involved there is probably nothing left. I have had to go through this process twice and never got a paenny - it just cost me a hundred quid or so each time! Last time the balifs got there everything they owned had mysteriously disappeared... f*****s !
Some links to help:
www.small-claims.co.uk/documentation.htm
www.moneyclaim.gov.uk/
Some links to help:
www.small-claims.co.uk/documentation.htm
www.moneyclaim.gov.uk/
sounds like bob hope and no hope m8
mostlikely you get naff all and best give it up
my guess as he said he wont sell house is that hes got some to buy out his equity from the reciver.
and if he has a partner then half of the equity will be hers
if if he dident the chance of you getting anything are prity slim afer the reciver have had there cut
id save you money and not go for ccj if he really is going for the big B
but there a posibility he bluffing albe it small
>> Edited by OUTLAW-1 on Tuesday 10th January 20:51
>> Edited by OUTLAW-1 on Tuesday 10th January 20:52
mostlikely you get naff all and best give it up
my guess as he said he wont sell house is that hes got some to buy out his equity from the reciver.
and if he has a partner then half of the equity will be hers
if if he dident the chance of you getting anything are prity slim afer the reciver have had there cut
id save you money and not go for ccj if he really is going for the big B
but there a posibility he bluffing albe it small
>> Edited by OUTLAW-1 on Tuesday 10th January 20:51
>> Edited by OUTLAW-1 on Tuesday 10th January 20:52
Cheers fellas
I'm going to write them a final demand / notice of court action letter, giving them 14 days to pay. If I get nothing I'll spend £250 and do the small claim. If they bother to defend I will get a judgement of some sort. If thye refuse to pay I may get zip, but eventually I may be able to get charge on the house or apply directly to garnishee their wages (I know know they are working for a big construction firm as employess).
Either way, as long as give them a few sleepless nights it may make them think twice before doing it again..
I'm going to write them a final demand / notice of court action letter, giving them 14 days to pay. If I get nothing I'll spend £250 and do the small claim. If they bother to defend I will get a judgement of some sort. If thye refuse to pay I may get zip, but eventually I may be able to get charge on the house or apply directly to garnishee their wages (I know know they are working for a big construction firm as employess).
Either way, as long as give them a few sleepless nights it may make them think twice before doing it again..
[quote=johnfm]A pair of builders owe me a few thousand quid. I just spoke to one who siad they are declaring themselves bankrupt etc. I know he has equity in his house, about £60k or so. When I asked "won't you need to sell the house" he said no.
[quote]
If it's a limited company, directors' assets are (except in very limited circumstances) beyond the reach of the company's creditors.
If however they are trading as a partnership, the partners' assets are very much fair game if the partners seek to have themselves declared bankrupt. Any equity in the house (or at least the share of the house owned by the guy in question) would form part of his estate and would be applied by the trustee in bankruptcy against debts owed to creditors.
I suspect it's either the form situation here or the guy hasn't bothered to take advice on what the impact of bankruptcy will be if it's the latter.
Any litigation pending is automatically stayed when a company is wound up or when an individual is declared bankrupt. The person bringing the claim then ranks as an unsecured creditor alongside all the others and will be paid pro rata according to how much money is left (if any - and there usually is very little, if any at all) when the preferential and secured creditors have been paid.
[quote]
If it's a limited company, directors' assets are (except in very limited circumstances) beyond the reach of the company's creditors.
If however they are trading as a partnership, the partners' assets are very much fair game if the partners seek to have themselves declared bankrupt. Any equity in the house (or at least the share of the house owned by the guy in question) would form part of his estate and would be applied by the trustee in bankruptcy against debts owed to creditors.
I suspect it's either the form situation here or the guy hasn't bothered to take advice on what the impact of bankruptcy will be if it's the latter.
Any litigation pending is automatically stayed when a company is wound up or when an individual is declared bankrupt. The person bringing the claim then ranks as an unsecured creditor alongside all the others and will be paid pro rata according to how much money is left (if any - and there usually is very little, if any at all) when the preferential and secured creditors have been paid.
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