Urgent advise needed!!

**DaveB** · 19 December 2006, 23:19

I'm not sure if it applies if Co. B has gone bust but you can take out what is called a Garnishee Order against the sources of the debt. I.e A owes B who owe you, so you get the order against A to pay you the money directly.

Probably wont do the relationship any good but it doesn't look that great anyway.

**VectraMan** · 19 December 2006, 23:24

What kind of "group" are you? I believe (and I may be wrong - ask an expert) that employees will receive unpaid salary and redundancy if the employer goes bust, which may apply if you are "employees" of the agency. To apply it to the client you'd have to prove you were really employees of the client, which is a bit different (and may well prejudice any future work they have for you).

If you were acting as a Ltd. company, then you're probably screwed.

You'll be just another creditor of the agent, and company A is under no obligation to pay you anything.

**Chezzi3** · 19 December 2006, 23:46

Hi, we are a group of self employed free lance trainers who provide our services 90% to A through company B, we are not "employed" or Ltd companies.
C

**VectraMan** · 19 December 2006, 23:51

Originally posted by DaveB

I'm not sure if it applies if Co. B has gone bust but you can take out what is called a Garnishee Order against the sources of the debt. I.e A owes B who owe you, so you get the order against A to pay you the money directly.

Surely that amounts to giving preference to one particular creditor of B, which is a no no.

**tim123** · 20 December 2006, 09:53

The money belongs to B' receiver.

If A pays it to the contractors, the receiver will still come chasing A for the money.

It's not illegal for A to pay the contraors but they won't nulify the debt to B by doing so.

tim

**boredsenseless** · 20 December 2006, 09:57

Originally posted by tim123

The money belongs to B' receiver.

If A pays it to the contractors, the receiver will still come chasing A for the money.

It's not illegal for A to pay the contraors but they won't nulify the debt to B by doing so.

tim

Correct from my point of thinking as well.

They may however pay the contractors as a goodwill gesture anyway though if they want them to continue to perform the work, since the ongoing work without the agents cut will save them cash over the long term.

**Chezzi3** · 20 December 2006, 21:34

Hi, spoke to a solicitor today, apparantly you cant get a garnishee order after the company has gone into Administration, let that be a warning to everyone, you should get one if you are not paid, but before liquidation!!

The only hope seems to be the company A coming to our rescue, which may not happen.
One solicitor said that if A didnt pay B, the receivers probably wont bother chasing for long, as there will not be the money to take it to court etc etc. So maybe A could pay us then? hope hope, Thanks for your help anyway.
C

**malvolio** · 21 December 2006, 09:16

I assume you as a group have approached A with an offer to take on the work directly? Od did I miss something?

**tim123** · 21 December 2006, 22:37

Originally posted by Chezzi3

One solicitor said that if A didnt pay B, the receivers probably wont bother chasing for long, as there will not be the money to take it to court etc etc.
C

For a debt of 20K plus, this is unlikely. If this got to court the receiver will win and the company will get stuck with the court costs to pay as well as the debt.

The receiver will chase any debt as far as possible unless he thinks that the debtor cannot pay. This doesn't seem likely in this case.

tim

Urgent advise needed!!