How do I serve a "Winding up Order"?
Discussion
Need a bit of advice and I am hoping someone else has been thru the proceedure.
I have served a "Statutory Demand" on a debtor, the 21 days is up next week and I have a gut feeling that on this occasion I will not be paid (always worked in the past!). I know the next step is a Winding Up Order, but how do I serve this? There seem to be a few forms available and I need to know if I have to lodge something with the courts etc so that a Liquidator will be appointed.
Help please
Nick
I have served a "Statutory Demand" on a debtor, the 21 days is up next week and I have a gut feeling that on this occasion I will not be paid (always worked in the past!). I know the next step is a Winding Up Order, but how do I serve this? There seem to be a few forms available and I need to know if I have to lodge something with the courts etc so that a Liquidator will be appointed.
Help please
Nick
Try here:
www.insolvency.gov.uk/contactus/enquiryline.htm
To many variables in insolvency to give a general reply and possibly not wise to discuss in 'public' if the case is likely to be sub judice in the near future. Sorry I can't be more help based on what you've said, but if you want more advice feel free to email.
www.insolvency.gov.uk/contactus/enquiryline.htm
To many variables in insolvency to give a general reply and possibly not wise to discuss in 'public' if the case is likely to be sub judice in the near future. Sorry I can't be more help based on what you've said, but if you want more advice feel free to email.
I've just read the posting so you may be a way down the line with this. If not - a word of advice (learned the hard way!!!)
Courts do not like winding up companies. It increases unemployement, puts pressure on the welfare system and generates huge fees for everyone which are seldom recovered. Thus, they will do all they can to prevent such action being taken.
Stupid as this may sound, the actual debt is of secondary importance to the procedure.
If you are going to wind a company up, you need to make sure that everything - and I mean EVERYTHING - is done to book. Purchase orders, proof of deliverey, correct invoicing, correct dates - the whole lot! If not, they will find a way to wriggle out of it.
Example: We did exactly what you are doing to recover a £8k debt from previously reliable client. They disputed the invoice (even though it was exactly as quoted) and denied ever requiring what we supplied (despite accepting delivery, using it and writting to us chasing it up!). What we didn't have is a purchase order and because of that, ended up paying his legal bill, writing off the debt and incurring fees ourself - a total of £16k lost!!
So the client ends up with a new logo, stationery, brochure and website for free, we end up with a £16k loss.
The law is most definatly an ass!!
If your client is just being awkward and you have done all you should, go for it.
If your client is having difficulties, it might be worth talking to him and trying arrange something else - you might not get all what you are owed but it will probably be more than you'd get through the courts anyway.
Good luck!
Courts do not like winding up companies. It increases unemployement, puts pressure on the welfare system and generates huge fees for everyone which are seldom recovered. Thus, they will do all they can to prevent such action being taken.
Stupid as this may sound, the actual debt is of secondary importance to the procedure.
If you are going to wind a company up, you need to make sure that everything - and I mean EVERYTHING - is done to book. Purchase orders, proof of deliverey, correct invoicing, correct dates - the whole lot! If not, they will find a way to wriggle out of it.
Example: We did exactly what you are doing to recover a £8k debt from previously reliable client. They disputed the invoice (even though it was exactly as quoted) and denied ever requiring what we supplied (despite accepting delivery, using it and writting to us chasing it up!). What we didn't have is a purchase order and because of that, ended up paying his legal bill, writing off the debt and incurring fees ourself - a total of £16k lost!!
So the client ends up with a new logo, stationery, brochure and website for free, we end up with a £16k loss.
The law is most definatly an ass!!
If your client is just being awkward and you have done all you should, go for it.
If your client is having difficulties, it might be worth talking to him and trying arrange something else - you might not get all what you are owed but it will probably be more than you'd get through the courts anyway.
Good luck!
I got to this stage some years ago, though luckily not for a massive amount. Your local County Court will have a series of clear leaflets explaining all the processes step by step. A CCJ is easy to get but professional debtors simply add them to their collection; the more they get, the cleverer they think they are. Similarly solicitor's letters will be discarded with a chuckle.
The problem is that each step of the legal process means laying out more of your own money to try to recover the debt. If the company has no money or is simply 'determined' not to pay you, there's a lot to be said for simply walking away and hoping they all die horribly.
The problem is that each step of the legal process means laying out more of your own money to try to recover the debt. If the company has no money or is simply 'determined' not to pay you, there's a lot to be said for simply walking away and hoping they all die horribly.
simpo one said: I got to this stage some years ago, though luckily not for a massive amount. Your local County Court will have a series of clear leaflets explaining all the processes step by step. A CCJ is easy to get but professional debtors simply add them to their collection; the more they get, the cleverer they think they are. Similarly solicitor's letters will be discarded with a chuckle.
The problem is that each step of the legal process means laying out more of your own money to try to recover the debt. If the company has no money or is simply 'determined' not to pay you, there's a lot to be said for simply walking away and hoping they all die horribly.
Other alternatives I have come accross:
Hire 7 midgets/dwarves to dress as the seven dwarfs and get them to follow the debtor everywhere - meetings, office, pub, home - the whole lot. Works just a well with one dwarf ! (apparently there's a group in Southampton that do exactly this and their recovery rate is very high!)
Secondly, get the smelliest, dirtest tramp in town to sit in the debtors reception until he receives your cheque.
Thirdly, visit the roughest part of town, enter the roughest pub and put word about that you want to sell a debt.
Good luck
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