Losing money to companies folding?

[corn02]

My brother has money for products in a company on shaky ground. They say they wil lrefund the cheque, how likely is this? What is likely to happen. Its a big company and I'll give you a clue, I refer to it s a mother f**king inconvienience.

[Over the Bar]

They will probably go insolvent, a legal way to write off all your debts.

[Shamrock Shore]

Slim chance cos others may rank ahead like employees, Revenue, secured creditors etc if the MotherF goes tits up.

The motto in all these cases when paying deposits is to pay by credit card cos you may get a full refund from the credit card company if things do got tits.

[A Quinn Martin Production]

This company is in adminstration which means it was about to go down the Swannee but it has bought more time (technically up to a year) by bringing someone from outside in to run the business (the administrator), so it has not gone bust.  It cannot be wound up during this period unless a court thinks it's in everyone's best interests to do so.  In your brother's case, he has paid for goods that he has not yet received...if there are goods in the warehouse that are clearly labelled as his then he should get them no problem...especially as the company is continuing to trade in the short term.  He may have to pay for their delivery.  Depends what the administrator's plans for the company are.  Try www.which.co.uk for some help.

[The Real Laoislad]

One builder owes me a good few thousand for work I have finished,They were a LTD company and have gone into liquidation so I am being told I haven't a hope of getting my money..Could this be true?

[under the bar]

Slim chance cos others may rank ahead like employees, Revenue, secured creditors etc if the MotherF goes tits up.

Other than employees there's no heirarchy of creditors now afaik.  The VAT & Revenue man shares in the same spoils as everyone.  Yopur brother probably will be lucky to get 10p or 15p in the pound owed.  Biggest winners are always the administrators who's bill is settled first at about £400 per hour.

One builder owes me a good few thousand for work I have finished,They were a LTD company and have gone into liquidation so I am being told I haven't a hope of getting my money..Could this be true?

Sorry but probably true RLL.  See above but you will need to send your proof of debt to the insolvency solicotors.  A notice will appear in the paper stating who they are.   It will take a couple of years and you'll be lucky to get 10-15% of what you are owed.

[Shamrock Shore]

Quinn Martin types alot of sense. Similarly if it was in this part of the world the Examiner would have a window to turn the business around. Now I am unsure on customer deposits. Hard to see if an item was sold to a punter but that item had a 'reservation of title' on it by the supplier who hadn't been paid then I don't know who has priority.

Under the Bar is wrong. There is a set list of who ranks where headed by Employees, Secured Creditors and then Revenue. After that it's a free-for-all.

Laoislad - pm to me the name of the company and I will do a search in Iris Oifigiul for you and advise you of your limited rights.

[Bud Wiser]

One builder owes me a good few thousand for work I have finished,They were a LTD company and have gone into liquidation so I am being told I haven't a hope of getting my money..Could this be true?

LL, hope this works out for you.  I have on the bottom of my invoices that "All goods supplied and equipment fitted as described on this invoice remains the property of (my company) until full paid for."

This gives you some hope for a few reasons, one is that the liquidator wants to have a resalable asset and not a showhouse that is in shite after you send in the boys from The Heath.  If he is a builder go in fairly strong, they generally yap among themselves and then you become known as an easy touch.  Send them a statement with the conditions above on it and if a liquidator is appointed send a copy to him.  If there is a creditors meeting make it known that you want to be notified and make sure you are there and tell the liquidator that you are going to recover your goods (cable) and that there may be a bit of damage.   Best of luck.

[under the bar]

Under the Bar is wrong. There is a set list of who ranks where headed by Employees, Secured Creditors and then Revenue. After that it's a free-for-all.

I am referring to the process in the North.  The VAT & Revenue no longer rank higher.

[Shamrock Shore]

Apologies UTB. I am unfamiliar with Northen laws in this area. One important fella I forgot is The Liquidator. He is the Daddy of the lot. (Shamed to foget him). His fees come before the Employees

Bud - if the company here is banjaxed then I bet you a milion euro it owes a scatter load of VAT to Revenue. I cannot see the liquidator allowing the unsold houses to be so vandalised. LL would be up before the beak I fear.

Unless the unsolds can be shifted and the liquidator and employees and Revenue cleared then whatsever is left usually is sweet FA.

LL - you could make a derisory offer on an unsold house and you may make your money back in this way! But shout and roar at the creditors meeting (when it happens/if it happens and where a statement of affairs will be presented) but sending letters etc probably is a waste of time unless the statement of affairs presented to the meeting does not have your full liability shown.

[mylestheslasher]

One builder owes me a good few thousand for work I have finished,They were a LTD company and have gone into liquidation so I am being told I haven't a hope of getting my money..Could this be true?

This is very true I'm afraid. You  will be bottom of a long queue of people taking whatever money is left from sale of the companies assets. Ahead of you are people like the lawyers, accountants (those doing the liquidising, revenue etc etc. My brother is an accountant and he reckons there is only peanuts left for the ordinary joe soap who is owed.

[under the bar]

Apologies UTB. I am unfamiliar with Northen laws in this area. One important fella I forgot is The Liquidator. He is the Daddy of the lot. (Shamed to foget him). His fees come before the Employees

Yep.  There usually not much left by the time he's finished.  Napiers up here charge £400 per hour!

[The Real Laoislad]

One builder owes me a good few thousand for work I have finished,They were a LTD company and have gone into liquidation so I am being told I haven't a hope of getting my money..Could this be true?

LL, hope this works out for you.  I have on the bottom of my invoices that "All goods supplied and equipment fitted as described on this invoice remains the property of (my company) until full paid for."

This gives you some hope for a few reasons, one is that the liquidator wants to have a resalable asset and not a showhouse that is in shite after you send in the boys from The Heath.  If he is a builder go in fairly strong, they generally yap among themselves and then you become known as an easy touch.  Send them a statement with the conditions above on it and if a liquidator is appointed send a copy to him.  If there is a creditors meeting make it known that you want to be notified and make sure you are there and tell the liquidator that you are going to recover your goods (cable) and that there may be a bit of damage.   Best of luck.

Thanks for the advice Bud but they are Private houses I have worked therefore people are actually living in them so I couldn't go ripping stuff out!
BTW would Ballinakill lads not be better to do such a demolition job than Heath fellas?

[Bud Wiser]

Ballinakill Lads are too busy taking salmon out of the Erkina on sprongs at the moment- big fresh fish sale in Drurys on Saturday night.  Come early and we will raffle one for you along with a brace of pheasants.

[magickingdom]

One builder owes me a good few thousand for work I have finished,They were a LTD company and have gone into liquidation so I am being told I haven't a hope of getting my money..Could this be true?

LL aproach the builder and ask him can you get your hands on anything before the liquidator (fixtures & fittings/tools etc) but esp any debtors he has that might pay you directly and avoid the co. (totally illegal but very possible) because after the liquidator there will be nothing/very little left.