Official Receiver and Creditors

[alwaysinamess]

Hi Guys,

I maybe asking the obvious but before I come in with my question, what is the deal / reason with giving all your creditors to the Official receiver ?

 

[Lisa Thomas]

I'm not quite sure what you mean by 'giving all your creditors'?

When a company enters compulsory Liquidation through the Court the Official Receiver is initially appointed Liquidator and part of their role is to realise any available assets to pay any available dividends to creditors.

 

[alwaysinamess]

For my business there is no assets left, whatever I had i sold to live and I will be more than open about this but it just bought in money for food and rent electric and water etc

Ill come out with my question, 2 of the creditors will still pursue debts after the company has wound up. what is the position with this, the debts are in the small figures but should I ever use the company again they will use whatever money I give them to pay off the existing debt.

 

[Lisa Thomas]

Hi

I'm sorry I'm not quite sure I understand you completely.

If the Company has entered Liquidation then you are not personally responsible for any company debts unless they were erroneously in your personal name rather than the company's, you have given a personal guarantee to those creditors (or have acted inappropriately for which the O.R decides to pursue you).

 

[alwaysinamess]

Hi

I'm sorry I'm not quite sure I understand you completely.

If the Company has entered Liquidation then you are not personally responsible for any company debts unless they were erroneously in your personal name rather than the company's, you have given a personal guarantee to those creditors (or have acted inappropriately for which the O.R decides to pursue you).

Lisa Hi,

So I am asking about PayPal, would you know about this ?....The account was setup in the Ltd Company name and they always contact me for example Dear My Company Name Ltd.

This one of the worst companies to ever walk the planet, not for that to argue here, looking at the user agreement I can not see where there is personal guarantee to the debt.

If you open another account, then they find out for whatever reason and link the accounts one the things they will do is limit this next account however many down the line and take the monies to pay a outstanding account or ask you to pay the outstanding account even though the company has been wound up.

As a final but secondary point, would you put down debts to other companies even if they are not in contact with you any more ?

Or maybe contact the company first and explain what has happened and ask if they wish to pursue it still.

For example I used a courier company that when I was on holiday never gave me my discount and took a large lump from my account, even though they offered me some money back it was not enough so I witheld payment from them until it was settled, it never was and after a while I never heard from them again.

Just some advice on what is best but important the PayPal issue.

 

[ethical PR]

Slightly confused - how have you ended up owing Paypal money from your company?

 

[alwaysinamess]

This the question I ask, is the person who opened the account liable or is the company liable. The account was opened in the Company name, but this happened also to a friend of mine and they take no notice of the O/R, you have to clear the balance regardless, so maybe I will bring it up with the O/R as they I guess would have experience of this..it could be a fiver it could be a grand, I have no idea

 

[Lisa Thomas]

Hi Can you answer Ethical PRs query - what does the debt relate to re Paypal and who had the benefit of any goods/services?

I suspect the answer is in Paypals terms...

 

[alwaysinamess]

i am sorry but I do not understand the question, his or yours,

 

[Lisa Thomas]

You are asking who is responsible for a Paypal debt.

What does the debt relate to? Stock? Sales commission? Purchases?

 

[alwaysinamess]

It would be for credits to customers I would imagine. They will not let me review the account and they will not tell me the figures.

 

[Lisa Thomas]

So the Company sold goods to customers that were paid for via Paypal but were never delivered to the Customer.

The customers will then be creditors, unless Paypal has refunded their money in which case Paypal will be a subrogated creditor.

Paypal may also be owed some kind of commission as a creditor.

Although on the face of it, it sounds like a Company liability I believe Paypal may have personal guarantee terms in their terms that you might have agreed to, which would make you liable for the debt.

 

[alwaysinamess]

No the people got the goods, most of them at the time were regular customer of mine, Paypal locked my account with about £1,200 in one and 600Eur in the other,

I was unable to do anything with the funds, so I asked the customers if I could refund them and the ones I could not refund, could open a case and then that would put it into a negative balance...and they pay me by bank transfer and they can keep a bit for their time and for doing this for me, it was the only way I could extract **MY** money without waiting the 180 days, having now had my bank accounts frozen this was probably a good idea.

 

[Lisa Thomas]

If all customers received their goods I don't understand what you were refunding them for.

Either way if the frozen cash is still due to the Company this will be for any Liquidator appointed to deal with.

I'm not sure why Paypay are witholding this - only they can tell you that.

 

[alwaysinamess]

Because when PayPal freezes your account without consideration to resolving issues, that is it, they will not release any funds for 180 days, I needed to pay rent and so, the only income I had was from PayPal, and over 2mil has gone through that account and they freeze it because of some algorythm, gracias a Natwest

for example some one paid me £2,000 for some widgets, I send this but I can not withdraw my money from them, the only way to withdraw the monies, is to refund the customer and take the chance they will re-pay me via bank transfer.

One time in Xmas 2011 I think, they held £18,000 of my money for nearly 3 months, so I learn from this never again.

 

[alwaysinamess]

Thanks anyway I appreciate your advice, shame such a company has a monopoly on payments.

 

[Lisa Thomas]

Its not much different than many Banks that withhold an element of card transactions payments in case the payments are subsequently challenged by the payee.