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Advice on recovering an unpaid debt for 7K from a firm applying to be struck off

4 years 9 months ago #1965 by RobScot

I am wondering if anyone can advise regarding how to best go about recovering an unpaid invoice (for £7K of consultancy work) which I carried out about 1 year ago? I had previously done a lot of consultancy work for this company but during the last assignment I worked on it became clear that they were in financial difficulty. I was told at one stage that the firm was having financial problems with the client of the project I was working on and that therefore I was 'working at risk' and that they might not be able to pay me in full unless the client agreed to pay them monies owed. However I was not formally requested to stop by a company director until some months later. Once I was asked to stop work on this project I did so immediately.

Having submitted my final invoice approximately 10 months ago I was then told by a company director that they could not pay the invoice and were considering winding up the company. I then sent my invoice to their registered accountants who did not pay the invoice but duly referred me back to a company director to query whether the invoice was valid. The director then informed me that the invoice would not be paid as they had no money to pay it and it would not be entered on the company accounts as they did not consider it to be valid.

Recently I checked on company house and it appears that about 2 months ago the company applied to be struck off Companies House register. I am now unsure whether there is any possibility to recover this debt and whether it is worth investing money paying the Money Claim Online (MCOL) service fees given this situation?

Any advice would be appreciated.

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4 years 9 months ago #1966 by james@cpa.co.uk
Dear RobScot,

I am sorry to hear of your situation and I am afraid it doesn't sound good. If it is true that they have no money because one of their clients hadn't paid them and they are being struck off then I am afraid there may not be much you can do. You cant get paid if there is no money to pay you.

Not knowing the company, I have no idea what assets they have but I suspect you won't get paid. It maybe that it is all lies and the money is really there but I would try and find out before spending anymore money on court costs.

Hopefully you can learn some (expensive) lessons from it.

In future I would heed warnings about clients being in financial difficulties. Don't just carry on until you receive official word. Stop and confront them. Ask to be paid for your work to date.

I wouldn't carry on working for someone who doesn't have the ability to pay me.

I would also recommend billing much more regularly in future if possible and then stopping work if the client stops paying are in arrears. At least then you limit your loss.

Again I am sorry for your situation and if I can help any further please feel free to email me.


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