AIBU to try and recover this debt?

[MaggieMagpie357]

Hoping someone on here may have some wise advice for me.

A very small business I did freelance work with for over three years ceased trading in the summer. The owner hinted at cash flow issues but then just stopped contacting me despite me sending emails, WhatsApps etc asking her to confirm if I should continue working. When I didn't hear from her after a full working week I emailed to let her know I wouldn't be doing anything further until she contacted me and sent my final invoice, which totalled roughly £1,100.

I heard absolutely nothing from her, even though the company was still taking money from customers (subscription- based online retail) and so after numerous final demand emails had gone unanswered I issued a demand for payment using the government money claim system which cost me £80.

Literally 5 mins after I submitted the claim, she paid me £700 - no email, nothing explaining anything. I updated the claim to incorporate the payment and they noted she still owed £400.

As she didn't contact them regarding my claim, a CCJ was then issued to her business address in September (this is the only address I have.) And I have heard
absolutely nothing since.

I have tried so many times to find advice on what to do next, but it all seems bafflingly complex to me - I even tried contacting her again via email today to give her one more chance to pay as she seems to have set up another business but I just received excuses and lies (she says she is not personally responsible for the debt and that the business was wound up in July which is not what Companies House says - and she is/was the sole director.)

It seems like I can either go through the courts and issue a summons which would have to be hand delivered (not possible as I don't know where she is!) or I have to pay a debt collection agency to act on my behalf. I know £400 doesn't sound like a lot but it's mainly the principle of it and the fact that she has behaved like a coward and treated me appallingly, when I have been extremely loyal to her - even when some of her business practices were questionable!!

AIBU to even try and get this money back? (And apologies for the long post!)

Is the money owed by the company or by her personally? It sounds like the company in which case has it been wound up or is it in the process of being wound up?

She says the company was wound up in July but information on Companies House suggests that's not the case. I think she has form for doing this in the past, running a small business for a few years then closing it and leaving a trail of debt behind.

I imagine you could spend a lot more than £400’s worth of time and money trying to get that back, and if the contract was with the business and it has gone bust you will never see it anyway. You may just need to let this go and be grateful you’re not £1k+ out of pocket. Maybe leave a trust pilot review on her new business!

I'm so torn. If she had simply got in touch at the start of the money issues I think I'd feel differently. I have also since found out she was fined over £3k for fly tipping commercial waste in a residential area in Dec 2020 which has made me see her in a whole new light!

Anyone else have any advise or opinions about what I should do???

I’m a commercial litigator (Scotland) I understand why you want to but it’s really not worth pursuing this debt further through the courts. If the debt is with the company then unless the company has assets you’re just wasting time and money to get a piece of paper which is essentially worthless. Sorry, realise that’s not the answer you want. Id keep an eye on the companies house page and if a liquidator is appointed you can submit a claim then.

ps - re service you’ll have to double check requirements in England but service usually has to be at the registered office of the company.

Personally I think I’d leave it. I was self employed a number of years ago and had a similar figure owed to me - around £500

It went to court and it was fully granted in my favour. Bailiffs attended her property and she literally just didn’t open the door to them. Ended up just completely being ignored

She also changed addresses several times in the entire period - leaving each property horrendously damaged (poor landlords never got a penny from her either) tracking her down each time was also a total nightmare for me

It was a large amount of money for me to walk away from but in comparison to other people she had debts with was nothing!

Karma actually eventually found its way to her door though - I have seen her a few times when I have driven through that town and she is a complete state!

So sorry you have to go though this though - it’s completely shit.

Thanks @Soddingchristmas - I think I know in my heart of hearts that I have to kiss goodbye to my money, it's just so galling to let her get away with not paying. I believe she knew exactly what she was doing by paying me the £700, because it seems if the debt is over £500 it's easier to get the courts involved. I hate myself for not listening to my gut instinct and stopping work when she first mentioned the cash flow issues.