Liquidated company owes me £3k, what can I do?

[Limmers14]

We paid nearly £3000 to a marquee company that have gone bust. Liquidators have been appointed and we have told them how much we are owed. There is a meeting of creditors on Jan 18th to confirm the company will be going into liquidation.

We were stupid and paid by bank transfer and of course, insurance does not cover anything Covid related. When I contacted the company in summer 2020, they assured me our money was being held in a special account for deposits however the liquidators have not confirmed this. And even if that was the case, it’s my understanding that in a liquidation, everything gets pooled together to pay off creditors.

I’m really, really frustrated. Of course I’m so sorry for the people who have lost their business, I really am, but I have now lost £3k and it will mean either getting into debt for our wedding or not having as many guests and it’s just the principle of being told our money was safe and feeling lied to.

Can anyone help me with the following questions or do you have any advice on what to do?

1. Can we submit a claim to the small claims court and should it be against the company or the individuals who owned the company?

2. Do we have any rights under consumer law?

Thanks for any advice

1. Unless you can prove that the owners were personally negligent in that they took your money knowing they were insolvent or they deliberately bankrupted the company, then no you can’t.

1. No.

Sorry but it’s very unlikely there will be any money left to pay creditors as the bank & hmrc have first dibs.

I don’t believe you can go to small claims as the company has gone into liquidation. You probably can’t sue the owners if it was a limited company. I believe your name will be added to a long list of creditors and you may get a small percentage of your £3k back but I wouldn’t count on it.

you are not likely to see much back if any, even then it can take years.

We have just done work for a company that owed us 10k and have gone into liquidation, highly doubt we will get anything of it back. its shit, sorry OP

Thanks for the quick responses everyone, really appreciate it.

@comefromaway I can’t prove negligence directly but do I have anything to stand on as they told me our money was safe and held separately?

@walkerbean16 that’s so awful, I’m sorry to hear that. You’re right, it’s totally shit. It really feels like theft

If they're a limited company which chances are they are, you wouldn't be able to claim anything from the owner of the company as the owner and company are treated as separates, if the company has went in to liquidation then you won't be able to claim from them either.

As above, unless you were able to prove that they knew the company could be going in to liquidation and that they took your money knowing this then you wouldn't be able to claim. When they told you your money was safe and in a separate account chances are it was but once a company goes bankrupt any money is pooled to pay off debts to creditors, HMRC etc (I believe).

Unfortunately I don't think you will see any of it back, although they may be able to tell you more positive news on the 18th (fingers crossed for you 🤞)