A company that is trading while insolvent

[solidgoldskullonastick]

At least I think so: the accountant said he would pay my (overdue) invoice by BACS, then he said he had done so, then when the money still didn't appear in my account I chased him down to be told that the bank had declined to pay. I asked if they were going bust and he called it a 'temporary cashflow problem'.

ANyone got any ideas on what to do? I think they are going to go bust (again) and then set up under a new name (again) and not pay anyone.

Have you supplied them with goods or services?

Is it a limited company? Is he a director? If so, he could be held liable if he is knowingly trading whilst insolvent.

If it is not a limited company, the person trading as the business will be personally liable for any debts. In which case you would be able to pursue any monies due to you through the civil courts.

It's a large-ish publishing company, not an individual, and I have written features/reviews for them. As (like most publishers) they take about 6 months to pay anyway, the problem is always that by the time one realises they are crap, one has still got another 3/4 months invoices outstanding

1. If you are due to write something more for them say you won't write it until the cleared funds are in your account.
2. Check the copyright position - if it's yours withdraw (or try to withdraw) your licence to them as you have not been paid - that probably won't work legally but it might persuade them to get on with paying you particularly if they still display the material on line
3. Then give them 7 days to pay saying you will otherwise sue (although if they go bust that's not going to help) - you can sue yourself on line with a credit care at moneyclaimsonline - Government web site or you could threaten to wind them up if you are owed more than £750 and serve a "statutory demand" on them which often prompts people to pay
4. Or hire a debt collector or go round there, and also call them every day and email putting pressure on them.

Good advice from Xenia and Freckle. I had a letting agent go insolvent on me a few years ago. I only got the large sum of money from him by turning up unexpectedly at the office. After waiting a while he went down to the bank and cam back with thousands of pounds in cash. Sometimes it helps to personalise things. Otherwise you are just one of many chasing him. You need to move fast to be ahead of the queue.

Thanks for advice so far. I have been having a word with the editors (who have no control over the accounts dept sadly) who say that they are not going bust, just up to their usual tricks of stalling in the hope that a percentage of freelancers will just give up and go away.