Where do I stand here? (bankrupt client)

[altyfc]

Hi

I have a client (a pub) who has gone bankrupt, leaving a debt of around £600 to us (made up of domains, hosting, and associated website promotion/maintenance services).

New incumbent has bought the pub but not taken on the debts. He wants the domains transferred to him (they are registered in our name) but isn't prepared to take on the debt. He is prepared to take on the debts that relate specifically to the domains (eg. re-registration).

Where do I stand here? Do I need to wait for the outcome of the former guy going into administration to see if I recover anything? Am I better off just accepting the offer from the new guy and calling it a day? Really not sure how to respond, so would appreciate any advice.

Thanks.

 

[MH1]

If you own the domains you can ask for what you feel they are worth, but sometimes something is better than nothing.

I agree with the new incumbent though, why should he pay someone elses debts?

You should also consider your credit control procedures, no system is perfect but you don't want to lose that sort of figure too often. Cash in advance works well for myself, pubs are notoriously risky clients.

 

[yorkshirejames]

Okay - do not expect to get anything from the administrator. If you get more than 5p in the pound I'll be amazed (and you have to do a lot of running around to get this, what with forms etc).

Now presumably you had a contract with the old provider to say that you could switch off websites/hold domains in the event of non payment. If not:
-if the pub is a distinctive name - example www.thehaggardoldsowleeds.co.uk then by refusing to give this domain to its rightful owner (i.e. the landlord/owner of the Haggard Old Sow in Leeds) you could be considered guilty of an offence (opportunistic registration is it? the same offence as if you registered www.topshop.biz for example).

-consider whether it is in your best interests to build a relationship with the new landlord - ideally doing a re-design of the site for him, updating info, etc etc.

If you do have a good contract with the old provider
-still consider whether one new customer is better than no new customer
-perhaps say that the coding for the site has been destroyed/was done by a subcontractor who refuses to allow it be used/uses third party software where a licence needs to be paid/blind him with IT science to get money out of him
-if not (and if you want to be bloody minded) then refuse unless he pays all the debt. You will be left with a domain that you _may_ be able to resell or may not, he'll open a website at www.thehaggardoldsowpub.co.uk and you will be the loser.

 

[Geoff T]

If you own the domains you can ask for what you feel they are worth, but sometimes something is better than nothing.

I agree with the new incumbent though, why should he pay someone elses debts?

You should also consider your credit control procedures, no system is perfect but you don't want to lose that sort of figure too often. Cash in advance works well for myself, pubs are notoriously risky clients.

Okay - do not expect to get anything from the administrator. If you get more than 5p in the pound I'll be amazed (and you have to do a lot of running around to get this, what with forms etc).

Now presumably you had a contract with the old provider to say that you could switch off websites/hold domains in the event of non payment. If not:
-if the pub is a distinctive name - example www.thehaggardoldsowleeds.co.uk then by refusing to give this domain to its rightful owner (i.e. the landlord/owner of the Haggard Old Sow in Leeds) you could be considered guilty of an offence (opportunistic registration is it? the same offence as if you registered www.topshop.biz for example).

-consider whether it is in your best interests to build a relationship with the new landlord - ideally doing a re-design of the site for him, updating info, etc etc.

If you do have a good contract with the old provider
-still consider whether one new customer is better than no new customer
-perhaps say that the coding for the site has been destroyed/was done by a subcontractor who refuses to allow it be used/uses third party software where a licence needs to be paid/blind him with IT science to get money out of him
-if not (and if you want to be bloody minded) then refuse unless he pays all the debt. You will be left with a domain that you _may_ be able to resell or may not, he'll open a website at www.thehaggardoldsowpub.co.uk and you will be the loser.

valid points...was in the trade, and worked for a pub management company, so speak with - some - confidence here!

1st, bottom line is that your previous customer's debt is - more than likely - irrecoverable.

If the landlord is leading the recovery action, 5 will get you 10 (no 20!) that they'll end up bankrupt -this is a bad debt write off to you!

2nd, If you lose new customer you'll lose option to claw back the loss through future profits

last - if you're feeling like you're fingers have been burnt, why not reduce credit risk by getting up-front / proforma cash payment? If not all, then at least part!

 

[Business News]

YorkshireJames has provided an excellent insight into how Nominet would view the validity of you holding onto a domain name and ways in which you can gain financially from transferring these assets to the new pub manager/owner.

If the failed pub was run as a private or public ltd company then your only recourse to recover debts is via the receiver with minimal prospect of getting anywhere meaningful. If the pub was operated as a sole trader or trading parnership then you have other avenues open to pursue the debt through the courts against the former trader.

If your offering to the new owner includes the web design and domain name transfer I would have thought he would be more than happy to pay at or near the £600 you are owed.

 

[OldWelshGuy]

Speak to the new owner FORGET the old debt it is gone and not your problem. Tell him you are reasonable, tell him that while you are rpepared to allow him to have the domain names, you want a fee to transfer them to him to cover your time and effort. £100 sounds ok and is common place among dodgy nominet registrars

But the BEST way is to see this as an opportunity rather than a loss. Sweet talk the guy, offer him a deal on the websites etc.

If he digs his heels in and tells you he is going to go to Nominet, then point out that he will have to wait until the official receivers have completed their bankruptcy order, as the domains (if you make them aware) would be considered part of their assets. This means the receiver would need to dispose of them PLUS pay you a sensible fee to transfer them

two can play hardball