advice about money owed

D

davepyro

Guest
Hi,
I'll try and make this brief..

I was owed 5 1/2 k from a ltd company for 5 months now.
They are struggling with their business so they offered to pay me 2800 euros and I was to write them a credit note for the rest under the condition that they would personally guarantee that they would pay me out of their own pockets as soon as they could the remaining amount, a personal iou as such. They refused to pay me any amount if I didn't agree.

I got just 2000 so far and they are avoiding paying the 800. I am now very unsure about their trustworthiness and I am coming to suspect that if I write off half the debts that I will never see the money.

Does anyone have any advice or tips?
Is there any legal documentation I can make them sign that will back me up if I take up this personal iou. Can I get a personal loan setup?
Am I being screwed?
If I agreed to do this previously do I have to follow through?
I never signed anything
note: they haven't paid me the 800 yet and I am beginning to doubt their intensions and honesty.

I need some words of wisdom. I am a small sole trader and broker at that. They were well happy with the work I did at the time.
thanks
Dave
 
i attach link about debt collection

http://www.cpaireland.ie/UserFiles/File/Accountancy%20Plus/Law%20&%20Regulation/June%202004/Law%20and%20Regulation.pdf

I would be slow to give a credit note. Bacailly writing off the balance. How well to you knew these people ie are they friends.

I dont understand why they would even suggest a credit note?

I would continue to work to get payment of full amount outstanding. The work was done and maybe suggest €500 euro a month over the next few months to clear.
 
I would not give them an iou under any circumstances.

I have an article on http://www.businessandlegal.ie on debt collection.

I would pursue them through the proper channels and you could threaten to wind up the company after giving them a 21 day letter as they are technically insolvent if they can't pay you.

A letter threatening S.213 of the Companies act (to petition to wind up company) normally works a treat but I would just place the matter in the hands of a solicitor if I was in your shoes.
 
Thanks for the info and links. I'll have a read through them. I'm going to go with my gut and not give a credit note as there's too many questions to their motivations.

cheers
Dave
 
i agree with the guys. don't give a credit note. the liability remains with the company but is being paid personally by the directors.
 
You must log in or register to reply here.
Back
Top