Re: FN-FORUM: Recievership

date posted 1st May 2006 16:58

Thanks very much for your time Mike, I guess I had too many eggs in a
basket. The worst part about it is they always paid very late, so I
had no idea this was happening. I'll get the letter out ASAP as
suggested, but as I feared, looks like I'm pretty stuffed even if
they do pay eventually, as the bills are stacking up now.

Fingers crossed for that big job to come up and make it all alright!

Paul

On 1 May 2006 13:45:53 -0000, Mike A [EMAIL REMOVED] wrote:
>
> The receiver should have sent you a standard letter and form for you to
> respond with. It is imperative that you quickly return completed details,
> certainly within 28 days.
>
> It is a good idea to set out in an accompanying note a breakdown of your
> debt. This will fall into two parts: already invoiced and un-invoiced.
> Already invoiced items are straight forward. Many creditors, though, forg=
et
> to apply what they have not yet invoiced for. Do this in detail, billing =
for
> Work In Progress and done. Also, if your work is contracted for a particu=
lar
> amount, set out a statement of the proportion of work not yet done but
> contracted, providing a note of why you want to charge that amount and yo=
ur
> potential to sue in court for it. Add further explanation that you would
> prefer to fulfil the contract and seek a note from the receiver that they
> will allow the contract to be completed. This generally means that they, =
not
> the firm in receivership, become liable for final payment.
>
> Once you have added the two sets of accounts together (already invoiced a=
nd
> other stuff) add 8% interest in terms of the Late Payment of Commercial
> Debts (Interest) Act 1998
> (http://www.opsi.gov.uk/ACTS/acts1998/19980020.htm), setting out a note w=
hen
> each element of interest starts to run (28 days after payment of invoices
> already raised, and 28 days after the date you make the claim for the
> remainder of the contract). Let the receiver sort out whether the interes=
t
> can be applied in this particular case.
>
> The reason for adding interest is twofold. First, it protects your intere=
sts
> should this matter run on a long time, and in any creditors arrangement w=
ill
> give you a higher return. Creditors arrangements are sometimes made to pa=
y
> in proportion of the total debt of the firm in receivership or liquidatio=
n
> (say 70%). Second, and more important, is that it may heighten your rank =
for
> payment. What does this mean?
>
> A receivership is not a liquidation. It is a formal method of ascertainin=
g
> whether the firm is in fact insolvent. It is often the case that the firm
> continues trading, either directly or as the result of a bargain which in
> effect wipes away the old business and allows trade to continue under
> another firms name. In that scenario it is in the interests of the
> bargaining party to get rid of your debt before others. In receivership
> liquidation prior ranking creditors will take their money first: the Inla=
nd
> Revenue and those with charges over the assets (usually banks) coming fir=
st.
> You need to rank as high as possible after that. Following, in general
> terms, what I have set out above will assist achieve this objective.
>
> As for your chances of getting paid, you will have to see what the receiv=
ers
> come up with as a final statement of accounts. You will probably receive =
a
> percentage of your money. How long? It will certainly take months, for th=
e
> final result must be approved by a court if it all goes into liquidation.=
If
> the firm are local you can apply to go on the creditors committee if one
> comes about, thus getting a handle on events. It's also useful for learni=
ng
> what really happens, from which you can perhaps structure future agreemen=
ts
> to protect yourself from such situations.
>
> You may care to Google for further feedback.
>
> Bottom line? Adjust your mind to accepting this may be a write off. By do=
ing
> so and recovering from it you will have a welcome bonus if at some stage =
in
> the future you get a payment. Also, to assist that recovery, get in with
> receivers and other creditors to take Web work from them - for what's los=
t
> on the swings...!
>
> HTH.
>
> Mike A.
>
>
>
> Creative Digital Alliance wrote:
> > Hi al,
> >
> > Got a letter friday telling me my main client has gone into
> > recievership, and to let the recievers know how much they owe me,
> > (quite a lot, approx 8k!). What are my chances of getting paid, and
> > how long can I expect to wait to learn the outcome, anyone know?
> >
> > Regards,
> >
> > Paul
> > --
> > Creative Digital Alliance
> > Tel: 0700 596 4491
> > http://www.CreativeDigitalAlliance.Co.Uk
>
>
>
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