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Trading While Insolvent/Wrongful Trading

(5 Posts)
LemonDifficult Mon 05-Sep-11 09:35:31

I believe a building company that I've got a claim against is Trading While Insolvent. I've got a Dun and Bradstreet report and it shows debts of about £100K, some outstanding since 2009, and a couple of CCJs. I know they're due to get some back payment for work (£30K) soon but otherwise they are just running up debt.

Is there anything I can do about this? Obviously, I'm going to write to them about the claim but I'm reluctant to run up legal costs that I know I'll never get back. OTOH, I'm reluctant to let the twat builder get away with it. What can I do? Does he have an obligation to go into liquidation?

As far as I can see most of his creditors are too small to push him there through the courts but I might be wrong.

TIA

prh47bridge Mon 05-Sep-11 11:02:58

Do you mean they have debts of £100k or that their liabilities exceed their assets by £100k? Having debts of £100k isn't a problem.

In any event, there is nothing you can do about it. A company is allowed to try and trade its way out of insolvency. If they fail it may mean that the directors will become personally liable for the company's debts if the company's position becomes worse as a result of continuing to trade whilst insolvent, leading to its eventual collapse.

LemonDifficult Mon 05-Sep-11 11:13:36

Thanks for replying - I meant their liabilities exceed assets by £100K.

They aren't doing anything to get out of their situation. Very frustrating that it's all going unwatched.

babybarrister Mon 05-Sep-11 16:50:11

report them to the DTI [or whatever the equivalent is now] - the company directors' disqualification unit ....grin

LemonDifficult Mon 05-Sep-11 18:33:25

BB, I can't tell if you are pulling my leg...

<goes off to google CDDU>

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