Priority debtors ? Preferential debts ?

Discussion in 'Askaboutlaw' started by SashaNiG, Jan 9, 2018.

  1. SashaNiG

    SashaNiG Registered User

    Im not sure if im posting this in the right section,and my apologies if I am not ,it seems like the most suited section I can see to ask.

    I was wondering if anyone could advise me.

    I was a sole trader for a number of years and stopped trading last year.
    I wont go into the complicated details. When I closed I have no money either in the business or personally, had to sign on social welfare,I have no assets whatsoever.

    But basically when I closed I had a debt to revenue, and the local council and to my landlord.
    Since the I have spoken to revenue and the local council and filled in forms about my income and they have said I dont have the assets or means to pay right now and have left it at that for now.

    My former landlord has wrote to me threatening to take me to court if i dont pay him what i owe him.At the time I was closing I offered him a solution to allow me to trade for a further week and allow me to fulfill orders I had which would allow me to pay off all my bills but he refused ,gave me 24hrs to pay all bills off and busted into my unit at night and chained up the equipment so I couldn't trade and had to close down, leaving the debt. Anyway 10 months later he is threatening to take me to court.

    Anyway someone has told me that there is a list of priority debtors when you close your business and that revenue must come first before all other debts. And seeing as I owe revenue this will help me with my former landlord ,they said i should get a solicitor to write to him stating that I owe revenue and that that debt takes priority.

    Im just wondering is this actually true that revenue comes first over other debts.
    I realise I need a solicitor for the factual law but i just cannot afford it right this moment and am hoping someone can advise me,is this actually true.

    Id appreciate any information
  2. Jim Stafford

    Jim Stafford Frequent Poster

    In a bankruptcy the Revenue would be a "preferential" creditor and would receive payment first from any assets realised. However, if you do not go bankrupt, then the landlord could try and enforce any judgment which he obtained in priority to the Revenue.

    In my practical experience, 90% of landlords would not take legal proceedings if you demonstrated to them that you had no money.

    You might have a valid counter-claim if the landlord made a "forcible" entry into your premises without a court order. In general terms, landlords can have a right to "distrain" assets, but they must go about it in the proper way.

    You should use the services of MABS who could write a letter on your behalf or perhaps FLAC might also write a letter on your behalf. I would be very surprised if the landlord issued proceedings when you have no money to pay him and that you might have a valuable counter-claim.

    One option for you to consider, particularly if you have significant Revenue debt, is to go bankrupt. The IMHO could assist you with the bankruptcy process for a nominal cost.

    Jim Stafford
  3. SashaNiG

    SashaNiG Registered User

    Thank you so much for taking the time to get back to me,I really appreciate it.
    And for the advise its good to get someones opinion on it and you give so much, I am going to speak to the groups you,
    advised and hopefully I can get it resolved so I can move on.
    Thanks so much again its helped me a lot :)