Dream Weaver

Right chaps/chapess's, I need a bit of Scoobynet wisdom.

Shook on a deal about 3 months back now, for me to design and build a full db driven site for a recruitment company.

We fully agreed all the workings for the site, cost etc etc, and he paid me a retainer (10%) for the work.

I then spent 3 weeks building the website, into the finished article which I have hear now. Everything is complete now, and I was waiting to arrange the hosting.

Meanwhile, the MD is having trouble with his biggest client (something to do with AOL), and the troubles have now sent him under so he has packed the business up owing me £1200!!!!!

So where do I stand now. He has emailed me to say he has closed the business, therefore wont need his website, and has no money, so now what?

DW

P20SPD

iTrader: (1)

Do you have a signed agreement/approval of final version by him?

yoza

Youve done your bit,now he pays whether he needs it or not.
Picture the scene.......I go to styling company asking for a one off body kit,heres 10% phone me when its done.Write car off,dont need kit any more,Im sure I would still have to pay for it.

Last resort Ill re-cover your money for a fee of 15%,not a total loss then.

Later Yoza

Jen

Surely now the business has gone under he'll go be selling off the assets of the business (or the finance companies will) which should enable you to regain any losses?

GaryK

DW,

Well you could try and go after him for the money thru small claims, but its very long-winded (took me 2 years to get £500 back once!), if the company is no more, is it a ltd. co? not sure you will have much re-dress otherwise you could slap a winding-up order on the co. but even then you will only get paid after the IR, VAT, Bank etc. etc. so it doesn;t sound too good.

Gary

ScoobyK

Don't know where you stand DW...but perhaps sell the concept / site to a similar company and try and re-coop your loses...good luck

Dream Weaver

Thanks all, it is a Ltd company, so he should still have his nice W Reg BMW. May take a wheel or 2

Didnt get a signed agreement, as it was one of my first clients (read: naive at the time). All jobs now have an agreement and full deposit.

luckily the site didnt take too long, and it could be adapted to another siilar company.

Sickener, but unlike him I dont have all my egs in one basket. It will set me back, but I am still here, thank god

DW

Diablo

DW

Insolvency & Recovery is my business, so I can help you here.

As the deal was with the business and the business was an incorporated entity then, given the circumstances you have described, you will likely be stuffed. Yes, you could raise an action against the company, but the chances are it will have insufficient free assets to pay you. If it is ultimately formally would up, you will rank as an ordinary creditor (along side who knows how many others) and only be eligable for any dividend payable after PAYE VAT & Employee liabilities (where applicable and with certain paramiters).

Oh, and without any formal written contract or evidence its your word against his/the company and you're looking at a long fight.

Jen - its not that simple.

DW - email me if you want to discuss offline - I can do some diging for you if you want

D




[Edited by Diablo - 8/16/2002 2:41:02 PM]

Gordo

Sorry mate, you're unlikely to get anything back.

He will have to appoint administrators (receivers or, if he has folded the business entirely, liquidators). Notify your outstanding debt with them. You will be classed as an unsecured creditor and will not see anything back until the bank, tax authorities and any other secured creditors (e.g. HP creditors) have been paid out in full.

I wouldn't hold your breath, mark it down to experience and consider asking for more up front or stage payments in future.

Good luck
Gordo

sqwint

Dream weaver
Go to clearlybusiness.com and look under the debt collection information section.
You can send a debt collection letter from Eversheds (UKs largest solicitors) for about £9.00. They have a very good success rate, and there are the full details if you wish to push further if there is no response.
Clearly business is a Barclays Bank website if that gives you any extra comfort in taking the advice.
If you wish to talk it over with me (I am a barclays Business manager) then e-mail me with a telephone number and I will call you Monday. (The advice is free!)

Good luck m8
Sqwint
(mark)

Pavlo

maybe the best he can do is give you good refs/verbatims, but even that isn't great coming from a company that went bust.

probably best to forget about it, otherwise you will have spent another £1200 worth of your time chasing it up.

paul

GaryK

Speaking from experience here I issued a winding up order against a company that owed me 5k last year, I didnt have any contract/formal agreement just my invoice and more importantly the fact they had paid some of the money which was seen as job done satisfactorily was enough (o and a $hit hot solicitor!) but I got my money back so just shows you!!!

Gary

Jen

Diablo - didn't think it would be Just knew a friend in a similar situation who managed to get their money back this way...I think it was a much smaller venture though...

Good luck DW

Diablo

Gordo,

He (being the MD) doesn't have to do anything. He can simply walk away and leave all the mess behind. There is no obligation on a director to take any formal action.

Administration only used if there is something to save, only a debenture/floating charge holder (usually bank) will appoint a receiver, and only then if there is a big enough debt to the lender and chance of recovery.

My guess is this business will simply dissapear into obscurity.

GaryK

You probably got paid because in your case the company concerned didn't want to be wound up. Believe me, a winding up action is the ultimate debt recovery process against an incorporated entity.

DW - you could raise winding up proceedings, but cost is comparatively high and you need to do some background work first to see if it is worthwhile.

Email me the name

Sqwint

LOL-thats not a plug is it per chance?

D


[Edited by Diablo - 8/16/2002 3:03:26 PM]

GaryK

Diablo,

exactly, thats why my sol. recommended it, he said I can pi$$ **** around for months thru small claims or go for the juggular with a winding-up order, from what I learned anytime I ever get someone trying to screw me over I would do it again without hesitation.

DW,

someone mentioned about referrals, that could be your best approach, appeal to the guy and try and get some company names/contacts that he can refer and recommend (perhaps with testimonial to you) in the hope that the new biz can offset the loss.

happy web designing....

Gary

Dream Weaver

Thanks all

I will probably leave it to be honest - having looked at the timesheet, I have only lost about £400 worth of time, so no biggy I suppose. Big lesson learnt anyways

DW

David_Wallis

YOZA, Were you joking or do you know someone who can recover debts?

David

NotoriousREV

Recovering debts is a well known Scouse hobby

Gis da cash, la, or ah'll fcukin' kill yer

Dream Weaver

David - looking at Yoza, I would say he'd be fairly good at doing it himself

DW

carl

Not really. Even if you had a formal contract you'd be unlikely to get anything. As Diablo says, in the event of insolvency the creditors get to pick over what's left once the Inland Revenue and HMC&E have got their slice, which usually isn't much

There isn't much you can do to protect against this.

yoza

No joke,I do recover money.......
But usually after Ive buried it

jods

Eh Eh - Calm down calm down arrite

Dream Weaver

Carl - big lesson learnt, in that I must get a bigger deposit and not trust people quite so much