Bad Debt - Sole Trader - How long to leave it?

[LuckyNo8]

Hi all,

We have a debt owed to us by a sole trader of £1400 odd dating back to end 2008. Despite getting a judgement in our favour, and HCEO involved, the debtor has ceased trading and also moved home.

At the time, they said that there was no point pursuing the debt as they were going to go bankrupt. We also thought this was a high probability but a search of the Insolvency Register online today reveals nothing.

If we were to use a tracing agent now, could it be a good time to pursue the debt plus previous costs (about £500 total now)? I'm only following this up as from what I know, they knew very well at the time they weren't going to pay us so I'm not very inclined to let it go. We have their previous address, name, and DOB (thank you Lucy Tenable!)

Then again, if you all think it really is more good money after bad, I can certainly think about it =)

Thanks!
Raj

 

[bdw]

I would contact a credit collection agency to see what they think.

 

[Angela Macready]

I suspect the judgment was in the name of the business so if it no longer exists, you may struggle to recover the money. If it does still exist though, there are quite a lot of websites out there that will guide you in the right direction of what enforcement action you can take against the individual - simply type 'enforcing a judgment' into your search engine.

Think about the High Court Sherrif option too - they usually have quite good results because they are paid on results.

Alternatively if you do want to instruct lawyers, let me know because I can give you the name of a colleague who you could have a chat with to see whether it is worthwhile pursuing.

 

[NickBristol]

I suspect the judgment was in the name of the business so if it no longer exists, you may struggle to recover the money.

The debtor was a sole trader - so the judgement will be in their name.

 

[leepriestley]

A lot of tracing agents would do a trace on a No Success- No fee basis. If you find the debtor, could be worth spending a few more quid to see if they own the house and then apply for a charging order

 

[Newbus]

As a sole trader they are personnaly responsible for the debts of the company so it is irrelivant if the company has ceased trading as the debt still rests with the individual.

However this is a commercial decision that needs consideration. Is there any chance of you getting some or part of the debt if you continue to add more cost to it.

I have been faced this this in the past and after looking past my pride and temper that this has been done I have taken the commercial decision to just right the money off as I felt I would be pooring good money after bad and I would more likely than not end up worst off my pursuing money that I just don't have any real chance of getting.

Some times this decision is tough. Good luck and hope you get some / all the money soon.

 

[LuckyNo8]

I think you've hit the nail on the head... temper and pride.

As he is personally liable for the debt, and I in theory have 4 more years to pursue it, just thinking it could be best to wait for him to get back on his feet, then pursue it again with interest etc included. Better than nothing.

Think I'm going to bide my time... get a credit report... and then when they least expect it...

 

[Geoff T]

(thank you Lucy Tenable!)

In the words of the song/film... "who you gonna call"???

 

[Alan R Price]

The amount involved is not substantial as these things go although it is a lot of money to be simply lost from one's pocket. My gut feeling would be to spend a small amount of money on a tracing agent and if he/she can find the debtor, pay him a visit. That will signify your intent. If the debtor does not then pay up, then since you have a ccj you can instruct the court bailiff to go and seize his goods - if he has any!