I run a small business and a couple of years ago we experienced some financial issues with two creditors (one of which is HMRC). We agreed a weekly repayment plan with HMRC and have been paying that ever since (although it has been a struggle). After refusing any payment arrangement, last year the other creditor issued a claim through the small claims court. We defended the claim, and their legal representative agreed a Tomlin order rather than pursuing the claim, which we agreed to. The Tomlin order specified that we pay a set amount each month until the account was cleared and should any of the payments not be paid they could apply for judgement. Fast forward 12 months and the legal adviser contacted us stating that we were two months behind on the Tomlin order and we needed to get the account up to date to prevent further action. We asked for a full statement, to which they replied with one showing that there are in fact 4 payments that have not been received by them. On checking our bank account, all payments have been made but they are adamant that these 4 payments have not been received, so we are investigating this with our bank. However, we have offered to make these 4 'missing' payments again to bring the Tomlin order up to date, but the creditor is refusing now and has instructed their legal representative to seek judgement. We intend to defend their application for judgement based on we can provide evidence that payments were made, but what are our chances? I'm also wondering what the implications are for our business if they are to be awarded a judgement against us? We don't require credit from any suppliers, etc, so that in itself isn't an issue but I'm worried about whether the court will demand full payment or is the court able/likely to agree monthly payments that are affordable? I'm also considering whether to just shut the business as I have another business to fall back on, but I don't really want to go down that route if I can help it, as I do believe in paying what I owe.