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.
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2 replies
froubylou · 07/07/2016 06:56
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