Messing around with payment

[gtr]

Hi everyone, I just need a bit of advice about a problem client. The background is I used to work at this company for a good few years. I left to go freelance/contract and 5 months after I left I went back there to do 2 months of work. 3 weeks in I get offered a great work opportunity somewhere else so I tell them that I want to end the job 2 weeks earlier than anticipated (I told them this 3 weeks before my proposed leaving date), which they weren't too happy about, even though they actually admitted that I only need to give them 1 weeks notice.

Long story short, 2 months down the line I'm still waiting for the last 2 payments (30 days payment from weekly invoice) so the payments are 3 and 4 weeks overdue, roughly. I've been asking nice enough every week for the payments but I keep getting answers like "soon" or "when we can, we have a cash-flow problem at the moment". So after I tell them that they should'nt have employed me if they didn't have the money etc. I get a brash email saying "I've been told not to worry about paying you since you walked out on the job, and that the work was shoddy!". As you can imagine I was fuming about this, not once did they mention that they had a problem with the work, so tried calling them but got a "he's busy right now, he'll call you back in 10 mins". No phone call. So I email the director and the others today and get an email saying "You'll get your money. We'll pay you as and when cash flow allows.".

I'm debating wether or not to send a 7 days, or court email. Any advice?

ps. The kicker is we actually agreed a reduction in my rate to accomodate the invoice and pay weekly arrangment.
pps. The unpaid invoices comes to roughly £2400, not small change.

Sorry if this is a little "rambly". Any advice much appreciated.

[lambrini_socialist]

it sounds to me like the time for giving the benefit of the doubt has long gone. you even have a record of their intent to screw you over (the "don't pay him" email). give 'em a 7 day final demand by recorded delivery then go through the small claims court ASAP. or send them a fresh turd in a shoe-box. your call

hopefully you have a written contract to back this up: but even if you don't, that shouldn't stop you using the courts (i got a CCJ against someone once - not a client, but a dishonest small trader - without providing any contract or receipt etc. they never bothered defending it so i won by default)

[gtr]

it sounds to me like the time for giving the benefit of the doubt has long gone. you even have a record of their intent to screw you over (the "don't pay him" email). give 'em a 7 day final demand by recorded delivery then go through the small claims court ASAP. or send them a fresh turd in a shoe-box. your call

hopefully you have a written contract to back this up: but even if you don't, that shouldn't stop you using the courts (i got a CCJ against someone once - not a client, but a dishonest small trader - without providing any contract or receipt etc. they never bothered defending it so i won by default)

Yeah that's what I had in mind too.

Unfortunately I don't have a written contract as such but I have got emails with them before I started work there, stating my hourly rate, payment schedule etc. Hindsight is a wonderful thing hey! The worst thing is that I worked there for a long time before this and knew them personally. *sigh* T****rs.

Thanks for your reply

[ASB]

Personally I have found winding up orders get their attention rather more. http://www.insolvency.gov.uk/guidanc...upacompany.htm

You need to be able to prove the debt (and it appears you probably can). You first cheap port of call should probably be the CAB if you do not want to pay a solicitor.

[lambrini_socialist]

Yeah that's what I had in mind too.

Unfortunately I don't have a written contract as such but I have got emails with them before I started work there, stating my hourly rate, payment schedule etc. Hindsight is a wonderful thing hey! The worst thing is that I worked there for a long time before this and knew them personally. *sigh* T****rs.

Thanks for your reply

sounds pretty straightforward to me. whether or not they actually have the money with which to pay you is another matter - however if you're successful in the small claims court, you can send bailiffs in to confiscate equipment equal in value to the amount owed. AFAIK as long as the business premises isn't a residential address, the bailiffs are allowed to force entry.

[gtr]

sounds pretty straightforward to me. whether or not they actually have the money with which to pay you is another matter - however if you're successful in the small claims court, you can send bailiffs in to confiscate equipment equal in value to the amount owed. AFAIK as long as the business premises isn't a residential address, the bailiffs are allowed to force entry.

That would make my year.

Personally I have found winding up orders get their attention rather more. http://www.insolvency.gov.uk/guidanc...upacompany.htm

You need to be able to prove the debt (and it appears you probably can). You first cheap port of call should probably be the CAB if you do not want to pay a solicitor.

Do you think it's worth trying CAB then? or should I just go ahead with the threat of a CCJ? I don't want to shoot myself in the foot.

[Hex]

Have a read here: www.payontime.co.uk

[where did my id go?]

Personally I have found winding up orders get their attention rather more. http://www.insolvency.gov.uk/guidanc...upacompany.htm

You need to be able to prove the debt (and it appears you probably can). You first cheap port of call should probably be the CAB if you do not want to pay a solicitor.

I'd be very tempted. they admit that they have cash flow problems and are unable to meet their liabilities. Isnt that a definition of insolvent?

[ASB]

That would make my year.



Do you think it's worth trying CAB then? or should I just go ahead with the threat of a CCJ? I don't want to shoot myself in the foot.

The problem I have had with going through county court for bad debt is that the bailiffs turn up and generally leave empty handed. The issue is for the bailiff to establish the company actually OWNS what they propose to seize.

A judgement on it's own is worth nothing unless the debtor is prepared to cooperate. It may be that they are, or it may be that they are not. It is often the case that a letter before action may focus their minds a bit - but by their own admission they have some difficulties. Also in the case where the claim goes undefended they can often get a stay of execution claiming none of the court documentation was received and then you have to go back to courts and aregue against a defended case.

If you want to go the winding up order route then it is a formal process, and it can be comparatively expensive - hence you need sensible advice. The CAB are supposedly versed in it but a commercial solicitor is a better bet. It is more expensive than country court or the small claims court. However it WILL get their attention.

It's not without risks though. The petition has to be published in order to ensure other creditors have a chance to launch claims or join in the party. If they do end up being placed into compulsory liquidation you will just take your place in the queue with the rest of the creditors.

One strategy might be a letter before action, see what happens and then go the winding up route instead.

i would suggest you carefully review the various links that have been provided, see what your options are and then discuss with a solicitor or CAD what your legal options are. There are a whole bunch of online solicitors that can probably give you good initial advice and initial chasing.

[gtr]

Just an update. OK so I left it a little longer then decided enough is enough. Their 7 days runs out on Wednesday, no reply at all so far, I think they think I'm bluffing.