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To ask what you would do

(3 Posts)
froubylou Thu 07-Jul-16 06:56:19

We have a small construction business. We manage but at times it's tough.

18 months ago a company we were working for went bankrupt. The contract had about 3 weeks left to run. The main contractor asked us to complete the works and he would pay us directly including 10k the company owed us.

We completed the works. Contractor didn't pay us.

It's been with the Solicitors for the last 15 months. We agreed an offer of payment 8 months ago. They never paid.

Now it's at a point we have to go to court. Or write it off. The debt is now up to 33kish because of interest etc.

Court and solicitors costs will be between 5-15k. Our solicitor is 80% confident we will be successful in which case costs will be passed on to him.

If we don't get the money (or at least half of it which we would be happy with) then nothing happens. We just plod along as normal. We lose all the profit for that years trading and end up with a 7.5k overdraft. Which we took out to tide us over.

If we win or he settles out of court we pay the overdraft off and have a bit of money in the business account for a change.

If we lose the case or he goes bankrupt we lose the business and we will also go bankrupt. As we will be liable for the fees.

According to companies house information he has (or his business has) a property worth 1.9 million. So I can't see him going bankrupt but that property is commercial property so with the current economic downturn it might not quite be worth that now.

Wwyd in my situation? I have to take emotions out of it and do the best for our business.

HelpfulChap Thu 07-Jul-16 07:03:45

Unfortunately I would write it off. The risk to you seems too great. Even if you win are you guaranteed to get paid?

Hopefully someone will come along and give you a proper legal opinion.

A horrible situation for you to be in. Good luck.

P.s I would exact revenge at at time and place to be decided in the future - but that's just me.

froubylou Thu 07-Jul-16 07:55:57

Revenge has been plotted many times. Only in my head though.

It's times like this I wish I had a sicilian uncle or 2. Or vinny Jones as a family member. Sigh.

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