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Any legal types out there who know about debt recovery?

9 replies

Hattie2 · 01/03/2007 16:34

Until the end of December I was working as a freelance contractor through a recruitment agency. The agency failed to pay the last month's invoice and are now not answering phones or emails. The rumours are that they are in receivership or administration but how do I find out which it is and if I am likely to get any of my money?

Have tried writing to them (recorded delivery) threatening legal action but letter was not delivered (a 'while you were out' card was left and I don't think they're rushing to the Post Office to collect it!).

If they are in receivership is there any point in starting court action to recover my money (would cost me £250 to file an online Money Claim)?

TIA for any advice or suggestions of what 'sort' of solicitor I need to see for advice.

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PrincessPeaHead · 01/03/2007 16:39

how much are you claiming for?
moneyclaim online is your best bet. the fees are the same or slightly lower than starting an action in the county court. at least if you get a judgment you will then be a creditor who will need to be taken into account in any administration.

Hattie2 · 01/03/2007 17:40

Thanks PPH. It's just over £11k they owe me (I'm very bad at keeping up with accounts and found more than one invoice was unpaid) so I think moneyclaim online will cost me £250 for this amount.
I'm assuming I'm a creditor already (?) as they haven't paid me under the terms of my contract - does having the court judgement move me up the list of creditors at all?

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Piffle · 01/03/2007 17:47

find you who the administrators are and file your claim with them
TBH you come way down the list if they are in shit streets financially though.. sorry

Banks, rents come first and to go into liquidation etc usually means they have not enough to meet their main obligations.
Crap for you I'm sorry

PrincessPeaHead · 01/03/2007 19:38

actually first comes salaries of employees, then inland revenue/NI, then banks or anyone else who has a charge over their property, then everyone else is ranked equally and will get paid out eg 50p in the £ or 2p in the £ or whatever.

You are right, you are already a creditor, getting judgment might just get you paid before the shit hits the fan. If it has already hit, and there is an administration order or whatever, getting a judgment wouldn't help you. But you could then just notify them to add yourself to the list of creditors I believe - I'm not sure how you find out whether this is happening/has happened and who the administrators are. CAB may be able to tell you if nobody on here knows. Sorry insolvency isn't my bag, as you can see.

FluffyMummy123 · 01/03/2007 19:40

Message withdrawn

PrincessPeaHead · 01/03/2007 20:09

no thats it, just have to wait now

Hattie2 · 01/03/2007 21:50

Thanks - I'm not expecting to see a penny of what I'm owed, so in the unlikely event of me ending up with something it will be a bonus.

Will try CAB about the administrators.

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batflump · 02/03/2007 12:14

Hattie2 - try Companies House online - you don't have to pay for 'Webcheck' reports and this should show if company is in any form of administration and who the administrators are - although sometimes it takes a while for the info to filter through. Don't take any other action until you find this out, itherwise it may be just throwing good money after bad.

Hattie2 · 02/03/2007 12:25

Thanks batflump - I have the name of the administrators now so will write to them with my claim ....

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