Getting CCJs Paid
Discussion
Our current legal advice is furloughed. I am hoping for some advice/guidance on how this works. The scenario is:
We traded with company B for over a decade.
Company A bought company B.
A is a huge UK business, B was tens of millions turnover.
Company A told us to foxtrot oscar despite having a signed agreement with B due to expire late in 2021 for services (the contract is clear).
We went through the pre court action with company A/B over around £80k of monies owed. They refused to play ball and settle any amount. David and Goliath situation, they went straight to a barrister. So far we are more than £7k into legal costs just following pre court action protocol.
Obviously high court costs for us would be more than the outstanding monies owed and high risk to our business finances should we win or lose.
We decided to break the claim down into smaller amounts and take the money claim route as the contract is across 4 companies in in B, and some of the services amounts fall in at less than £10k. We wont get all the money this way but enough to cover our losses.
Then covid hit and our advice went on furlough.
So far we have had 4 CCJs awarded (company B did not respond) but are still waiting for judgement to be confirmed since end of March (although HMCS says this, 2 of the CCJs have shown up on credit monitoring so I presume are now placed). The total value is around £3k, for invoices they originally agreed were due but then refused to pay, so very clear cut.
There are further claims to put through the money claim system.
Questions:
1) CCJs against company B - what if company A has moved all the assets/trading from B to A (this is not showing at CH but may have happened?) - are the CCJS unenforceable against B?
2) Enforcement - would enforcement go to any trading address of company B to seize assets or would they only go to the address on the judgement (the registered office address of B, which is the address for company A head office but not where B operates from)?
3) Could company A simply shut down B at any point and the CCJs become unenforceable, or would the debt roll on to A?
4) The next claim we would file will incur the highest costs (£400) to place the claim for just under £10k. Obviously we do not want to throw good money after bad. Can A simply ignore the CCJs and eventually close down B when the merger is completed and we get nothing?
5) In law can a company 'avoid' these liabilities by acting in such a way, or using another well troden path I haven't thought of?
Never had this situation before so any advice welcome.
We traded with company B for over a decade.
Company A bought company B.
A is a huge UK business, B was tens of millions turnover.
Company A told us to foxtrot oscar despite having a signed agreement with B due to expire late in 2021 for services (the contract is clear).
We went through the pre court action with company A/B over around £80k of monies owed. They refused to play ball and settle any amount. David and Goliath situation, they went straight to a barrister. So far we are more than £7k into legal costs just following pre court action protocol.
Obviously high court costs for us would be more than the outstanding monies owed and high risk to our business finances should we win or lose.
We decided to break the claim down into smaller amounts and take the money claim route as the contract is across 4 companies in in B, and some of the services amounts fall in at less than £10k. We wont get all the money this way but enough to cover our losses.
Then covid hit and our advice went on furlough.
So far we have had 4 CCJs awarded (company B did not respond) but are still waiting for judgement to be confirmed since end of March (although HMCS says this, 2 of the CCJs have shown up on credit monitoring so I presume are now placed). The total value is around £3k, for invoices they originally agreed were due but then refused to pay, so very clear cut.
There are further claims to put through the money claim system.
Questions:
1) CCJs against company B - what if company A has moved all the assets/trading from B to A (this is not showing at CH but may have happened?) - are the CCJS unenforceable against B?
2) Enforcement - would enforcement go to any trading address of company B to seize assets or would they only go to the address on the judgement (the registered office address of B, which is the address for company A head office but not where B operates from)?
3) Could company A simply shut down B at any point and the CCJs become unenforceable, or would the debt roll on to A?
4) The next claim we would file will incur the highest costs (£400) to place the claim for just under £10k. Obviously we do not want to throw good money after bad. Can A simply ignore the CCJs and eventually close down B when the merger is completed and we get nothing?
5) In law can a company 'avoid' these liabilities by acting in such a way, or using another well troden path I haven't thought of?
Never had this situation before so any advice welcome.
Simpo Two said:
I would cut to the chase and escalate it to the High Court. Let the high court bailiffs sort it out. Ever seen 'Can't pay we'll take it away'? That's them.
This, the amounts are certainly high enough for that. Only costs about £60 I think to do it. CCJs are pretty unenforceable..Gassing Station | Business | Top of Page | What's New | My Stuff