Debt Recovery - Judgment issued, What's Next?

[Atna]

I am an IT Contractor and have unpaid invoices worth 18K from a contracting agency dating back to last year. The agency agrees to this but they claim to be facing financial difficulties since last year. With this amount pending I myself went into financial crisis where I am unable to pay corporation tax and VAT payments to HMRC.

After many false commitments and broken promises I went to the court and had a County Court Judgment issued against the company as the agency decided not to defend.

I want to know my options and next steps. If I go for enforcement, what will happen if they manage to convince the enforcers that they don't have any assets or funds to settle the claim or what if they file for bankruptcy. What other options will I have at that stage.

Hoping for a sincere advice, Thanks!

 

[ethical PR]

https://www.gov.uk/make-court-claim-for-money/enforce-a-judgment

 

[Mr D]

If they shut down the company then you may get something eventually. Or not. You would be one of possibly multiple creditors paid out on a pro rata basis.

 

[Charlie B ACS]

Have you credit checked them, or got their latest accounts from companies house? That will give you an idea of what assets they may have. If they do, then look at High Court enforcement.

If they have little in fixed assets, do you know their customers? If you do, and the customer is likely to pay bills larger than the amount you are due, then a Third Party Debt order may well be the way to go.

 

[Lovetts Solicitors]

If you believe they are struggling financially and do not have sufficient cash or assets to discharge the debt then you could seek a payment plan directly with them. Alternatively, you would have to consider issuing a winding up petition against the debtor.