Judgement for default of Tomlin Order

Discussion in 'Legal' started by anonuk, Feb 13, 2020.

  1. anonuk

    anonuk UKBF Regular Free Member

    302 44
    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.
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #1
  2. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,632 1,324
    If you can show that the 4 missing payments left your account then you should be fine. Add to that that you have offered to bring the account up to date ( Do it straight away, rather than say you are going to do it) then again when it comes to court, your account is up to date.

    Just my opinion.
     
    Posted: Feb 13, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #2
  3. anonuk

    anonuk UKBF Regular Free Member

    302 44
    Thanks for your opinion. It was in line with what I was thinking, but I’m also concerned about the prospect of throwing money at them if they are still insisting to apply for judgement. What if I pay them the four payments and then they still get a judgement?
     
    Posted: Feb 13, 2020 By: anonuk Member since: Feb 27, 2014
    #3
  4. Lucan Unlordly

    Lucan Unlordly UKBF Ace Free Member

    1,723 307
    You said earlier that all payments had been made.

    Surely the first step is to find out what happened to them?

    Did they leave your account, where did they go to?
     
    Posted: Feb 14, 2020 By: Lucan Unlordly Member since: Feb 24, 2009
    #4
  5. MBE2017

    MBE2017 UKBF Ace Free Member

    1,958 710
    Set the situation as above out in writing, send it recorded delivery and obtain proof it is delivered. I doubt any court will do anything when they declined your offer to bring payments up to date whilst you investigate things.

    Meanwhile ask your bank for proof the money was sent and received by their bank, as long as it was I doubt you have anything to worry about.
     
    Posted: Feb 14, 2020 By: MBE2017 Member since: Feb 16, 2017
    #5
  6. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,632 1,324
    You said you have made the payments but the Plaintiffs have not received it. Prove that you sent it, that should be relatively easy.

    If the Plaintiffs have notified you that they did not receive the payments (and you checked with your bank that the payments did not arrive in their account, then making the missed payments by return (not saying you will, ONLY if they agree to not enforce judgement) is the prudent thing to do.

    A judge will always look at the facts in a reasonable manner.
     
    Posted: Feb 14, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,605 468
    Duplicate posting
     
    Posted: Feb 14, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #7