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Should I send in the baliff?

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jacktaylor67

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Jun 3, 2009
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Been reading 'Should I send in the bailiff?', found it very interesting, I need some advice what to do next and didn't want to hijack the thread.

I have a customer (ltd company) that is in liquidation owing just under £1500. The director signed a credit account form a continuing/personal guarantee.

My question is this, what is the best process going forward. The director confirmed by phone a few months ago that he would pay the debt personally, but I can't even contact him by phone now.

Do I start with MoneyClaimOnline or use a private bailiff? If I used MCO and a judgement was issued, would an Attachment of Earnings be the best course of action?
 
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I think you will find that your claim will have to be dealt with by the Liquidator, I suggest that you check with your solicitor or your accountant.

Andy
 
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I would say it all depends on the position the debtor is in, I.e. Does he have anything to seize, car,luxury items in his house ect, if no then another aproach would be suitable
 
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If there is a personal Guarantee, you will be able to persue the director, but you will need to spak to the liquidator to see if there is any dividend from the Ltd Company.

if there is your claim will be the money owed, less that amount.
 
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Spongebob - now you know this isn't always true - they do pay a dividend in about 2% of cases.

To the OP - as stated earlier it depends on what assets the Director has and if there is chance of recovery of the debt. if there is go County Court route and if he doesn't pay transfer it it up to a HCEO
 
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If he gave you a personal guarantee, surely the best route would be court.

I am probably wrong, but my understanding of a personal guarantee is that it is separate from the company, and since this company is limited, so is it's liability.

Unless you secured it against a business asset, you won't have any priority compared with secured creditors.
 
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At this time the liquidator isn't expecting a dividend.

If I start the process via MoneyClaimOnline to him personally, any dividend can be taken off surely, if I wait for news of a dividend it could be weeks before I can start the claim.
 
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If you think he has the ability to pay write to him giving him 7 days to pay and inform him if he doesn't pay you will instigate court proceedings for the due debt. If he doesn't pay then starta MCOL claim
 
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Spongebob said:
:D:D:D

Liquidators never have any funds left after their fees have been paid. The level of their fees simply rises to the amount of cash collected!
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A job for the boys...
I worked for a company some years ago. They purchased another co. purely for the freeholds. Made redundant 100 of 130 staff. Ran the company down with the 30 remaining over 18 months. Placed it with the receivers then did a deal with them whereby they got paid to collect any outstanding debts to them! They had obviously sold the freeholds by then and had been paid great sums for being so clever! you couldn't make it up...
 
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netro1 said:
If he gave you a personal guarantee, surely the best route would be court.

I am probably wrong, but my understanding of a personal guarantee is that it is separate from the company, and since this company is limited, so is it's liability.

Unless you secured it against a business asset, you won't have any priority compared with secured creditors.
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Netro is correct insofar a PG is separate from the company and enforceable as a debt against the guarantor. Firstly, you must ensure that the PG has is fact been executed correctly, as if it falls short in any way, there is no way the PG can be enforced.

I say let a lawyer look at the PG first, and then if it has been executed, commence legal proceedings for the recovery amount.
 
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I proceeded with MoneyClaimOnline and he has disputed the claim.

Stating that credit agreement was for the limited company and that the limited company is in liquidation.

The personal guarteenee was at the bottom of the credit form which had a seperate section for name, position, signature, date to confrim they agree stating:

Continuing Guarantee (LTD/PLC/LLP COMPANIES)

In consideration of your agreeing to grant credit facilities to the company or limited liability partnership, I hereby unconditionally guarantee the due and punctual performance and observance by the Company of its obligations herein and under your Condition of Sale overleaf, and agree to indemnify and keep you indemnified against any breach or non-observance thereof by the company.
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What are my options?
 
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Hi

If he has signed a personal guarantee then yes you can pursue the director personally. You do not need to wait for the liquidator to deal with the company's assets.

The question is whether the personal guarantee is valid. If you want to PM me I'll have a look at it for you.

You should write to the Defendant first of all advising him how much is outstanding under the personal guarantee. If you do not know where he lives you can instruct a tracing agent. If he does not pay then you can issue proceeings against him.

Clare
 
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Clare,

The guarantee that he signed was:

Continuing Guarantee (LTD/PLC/LLP COMPANIES)

In consideration of your agreeing to grant credit facilities to the company or limited liability partnership, I hereby unconditionally guarantee the due and punctual performance and observance by the Company of its obligations herein and under your Condition of Sale overleaf, and agree to indemnify and keep you indemnified against any breach or non-observance thereof by the company.
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The defendant is fully aware of the amount due, as we spoke about this by phone months ago, and he reluctunalty agreed he had to pay it, since then he disputed the claim and won't answer the phone.

If you PM your number maybe we could talk about what options you can provide?
 
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