Should I reach out to these insolvency practitioners?

[BenJacobs]

I've recently noticed on Companies House that a creditor who currently owes me circa £120,000 is liquidating a company in relation to his debt to me.

He acquired the company from me a number of years ago, and stopped paying.

He has since not grown the business and is now liquidating it.

I still haven't been paid, and he owes me a substantial amount of money.

The debt was in his personal name, rather than this limited company they're liquidating.

Should I therefore reach out to them and let them know this director owes me this money in relation to acquiring this business from me?

Thank you

 

[japancool]

The debt was in his personal name, rather than this limited company they're liquidating.

If the debt was in his name, then it's not a responsibility of the company and contacting the liquidator wouldn't really do much good. You'll need to take him personally to court.

Unless your contract with him says otherwise, the debt shouldn't be contingent on the existence of the company.

 

[BenJacobs]

If the debt was in his name, then it's not a responsibility of the company and contacting the liquidator wouldn't really do much good. You'll need to take him personally to court.

Unless your contract with him says otherwise, the debt shouldn't be contingent on the existence of the company.

That was my thought process, too.

The company being liquidated is in relation to the company he purchased - but it isn't that company that the financing was given to - it was to him, personally.

Not sure if that changes anything, or if it's still very much unrelated (which I feel it is, but wanted to double check)

 

[japancool]

That was my thought process, too.

The company being liquidated is in relation to the company he purchased - but it isn't that company that the financing was given to - it was to him, personally.

Not sure if that changes anything, or if it's still very much unrelated (which I feel it is, but wanted to double check)

CAVEAT - I'm not a lawyer or accountant. It's just my opinion, don't rely on it. A lot might depend on the terms if any agreement between you and him.

 

[Mark T Jones]

That was my thought process, too.

The company being liquidated is in relation to the company he purchased - but it isn't that company that the financing was given to - it was to him, personally.

Not sure if that changes anything, or if it's still very much unrelated (which I feel it is, but wanted to double check)

The first question - always - is'what dors the contract say'? Is the debt in any way contingent on the company performance/ existence

That said, on the face of it, I'd be chasing them personally pretty hard, and not bothering with the company

 

[WaveJumper]

Well @Mark T Jones is coming from the same place as myself, what contract have you in place, sounds like (and I could be wrong) that you have let this slide what have you done so far to chase the payments ?

 

[Lisa Thomas]

No point really if your debt is with the director personally.

However, the liquidators might start pursuing the director for any overdrawn DLA, or misconduct so if you're owed money you might want to ramp up your recovery action to get in line before them.

 

[Frank the Insurance guy]

He acquired the company from me a number of years ago, and stopped paying.

You need to go back to the original sale contract:
1. Who is the contracted Buyer - was it in his personal name or was it another company (it is common for a Special Purpose Vehicle/company to be used!)
2. What does the sale contract say about non-payment?

That should be a good start to find out what your options are,

As advised by other above, the IP of the liquidated company is likely to be irrelevant unless the sale contract states the company you sold is liable for the payment (which is unlikely!)

 

[ChrisCallaghan]

The first question - always - is'what dors the contract say'? Is the debt in any way contingent on the company performance/ existence

That said, on the face of it, I'd be chasing them personally pretty hard, and not bothering with the company

I'd strongly echo Mark's comment.

If the sale agreement was between you and the buyer personally, you'll want to start debt collection activities asap, as it is possible that you may be one of several claims against him. He may also be facing claims from debts he's personally guaranteed, and/or claims from the liquidator if he has any overdrawn director loan account issues.

On a side note, @BenJacobs - were there any outstanding arrangements in the company that you had personally guaranteed before the transfer to the new director? Did you have any issues with an overdrawn directors loan account at the time of the transfer?

 

[Michael Loveridge]

I've recently noticed on Companies House that a creditor who currently owes me circa £120,000 is liquidating a company in relation to his debt to me.

He acquired the company from me a number of years ago, and stopped paying.

How many years ago? You should be aware that the debt will probably become statute-barred after 6 years, at which point you will have no legal right to recover it.