Builder gone into liquidation to avoid court case

[Lockhouse]

Hi,

Our builder has gone into liquidation to avoid a court case with us and our case has been stayed.

I know I can prevent a strike off at Companies House to stop him folding.

What is the effect of doing this to him in real terms? I know we have no real prospect of getting our money back, but, if I can make life difficult for him, that's a definite plus.

Thank you

[fred bloggs]

Wow thats some effort to avoid giving you your money back.. You must have really annoyed him.

[kestral]

fred bloggs said:

Wow thats some effort to avoid giving you your money back.. You must have really annoyed him.

It happens all the time in the UK.

Last week it was all discussed in Parliament about how bad builders going into liquidation and then starting up again.

The government are discussing a licensing shceme.

[Grumps.]

kestral said:

fred bloggs said:

Wow thats some effort to avoid giving you your money back.. You must have really annoyed him.

It happens all the time in the UK.

Last week it was all discussed in Parliament about how bad builders going into liquidation and then starting up again.

The government are discussing a licensing shceme.

There are schemes available for builders to belong to albeit at their cost and it’s always recommended to use one that is part of one, however as with everything, customers are rarely inclined to pay the extra for the security!

[98elise]

kestral said:

fred bloggs said:

Wow thats some effort to avoid giving you your money back.. You must have really annoyed him.

It happens all the time in the UK.

Last week it was all discussed in Parliament about how bad builders going into liquidation and then starting up again.

The government are discussing a licensing shceme.

It's not just builders. Lots of companies phoenix to avoid claims. There should be much tighter controls.

[havoc]

98elise said:

It's not just builders. Lots of companies phoenix to avoid claims. There should be much tighter controls.

This. But as always, or government don't actually care...

[Lockhouse]

Thanks for the replies.

I agree there needs to be tighter controls and I believe they are repeatedly phoenixing which is a whole different ball game.

That apart, I'm more interested in the practical aspects of me preventing his company from being struck off. If I raise an objection at Companies House what does it mean to him in real terms?

Ta

[Lockhouse]

fred bloggs said:

Wow thats some effort to avoid giving you your money back.. You must have really annoyed him.

Actually it was the other way around - he put us through six months of hell.

[paintman]

www.begbies-traynorgroup.com/articles/closure-opti...

[Lockhouse]

paintman said:

www.begbies-traynorgroup.com/articles/closure-opti...

Perfect - many thanks.

[Freakuk]

My neighbour has just done the same, 30+ people on the payroll, gone into liquidation seemingly selling old vans off from his drive and now another business has spun up with his wife as director. Boils my p*ss.

[James P]

Lockhouse said:

Thanks for the replies.

I agree there needs to be tighter controls and I believe they are repeatedly phoenixing which is a whole different ball game.

That apart, I'm more interested in the practical aspects of me preventing his company from being struck off. If I raise an objection at Companies House what does it mean to him in real terms?

Ta

Is the company in liquidation or applying for striking off?

If in liquidation already you’re too late to do much, the company will automatically be dissolved 9 months after the liquidation is finished.

If applying for striking off, the Insolvency Service will object and the application stopped.

[Lockhouse]

James P said:

Is the company in liquidation or applying for striking off?

If in liquidation already you’re too late to do much, the company will automatically be dissolved 9 months after the liquidation is finished.

If applying for striking off, the Insolvency Service will object and the application stopped.

They've not gone into liquidation yet but are about to.

[Collectingbrass]

Lockhouse said:

Hi,

Our builder has gone into liquidation to avoid a court case with us and our case has been stayed.

I know I can prevent a strike off at Companies House to stop him folding.

What is the effect of doing this to him in real terms? I know we have no real prospect of getting our money back, but, if I can make life difficult for him, that's a definite plus.

Thank you

I would be

- making sure you haven't overpaid him, and seeking recompense from the receiver if you have (I know, but it will put their fees up)
- tell anyone who comes looking for payment that you have paid the builder in full for work done and they should recover from him
- give honest and truthful feedback on Google and any trade association he was in
- tell HMRC what you have paid this business, especially any VAT.

[fred bloggs]

Its not just you he's not paying, its the inland revenue. Probably owes 20k in corporation tax.

A certain not to be named motorcycle shop in south london change name every 3 years. Must have a good accountant that learned in eaton or something.

[Hol]

IF it’s a voluntary liquidation AND the company has net assets that the owners are trying to get out, then all is not necessarily lost.

Firstly, they have to appoint an official liquidator whose office will become the Registered Address. They will also be noted on companies house records, which everyone can view.

Secondly, the first part in the process is to publish that the company is liquidating in the London Gazette. This is deliberate and intended to notify anyone who believes they are owed money, so that they can contact the liquidator with proof of the claim.


Obviously, none of this helps if there is no money. But it does if there is.

[Jarcy]

It's a nice simple process to run away from your obligations, and start anew:

https://www.phoenix-business.co.uk/?gclid=EAIaIQob...

[Lockhouse]

Jarcy said:

It's a nice simple process to run away from your obligations, and start anew:

https://www.phoenix-business.co.uk/?gclid=EAIaIQob...

Superb. There is this though:

https://www.gov.uk/government/publications/phoenix...

[Mrr T]

Jarcy said:

It's a nice simple process to run away from your obligations, and start anew:

https://www.phoenix-business.co.uk/?gclid=EAIaIQob...

Except a CVA is not running away from your obligations. It an agreed (by exery one including creditors) transfer to a new company. Creditors normally accept some write off of debt with some moving to new co.

Unfortunately, for the unscrupulous it's possible. The problem is there is little money to enforce the laws.

[ClaphamGT3]

Lockhouse said:

Hi,

Our builder has gone into liquidation to avoid a court case with us and our case has been stayed.

I know I can prevent a strike off at Companies House to stop him folding.

What is the effect of doing this to him in real terms? I know we have no real prospect of getting our money back, but, if I can make life difficult for him, that's a definite plus.

Thank you

To the real terms point, what if any contract do you have and who is it with?

Has the project been of a scale where you have employed a quantity surveyor?

What records to you have in terms of payments made - ideally referenced to work undertaken?

Remember that, if the contractor hasn't been keeping accurate records and you are not able to demonstrate how much you have paid and for what, you may be considered as a debtor