What to do next when company owes me money?

Discussion in 'Askaboutbusiness' started by bskinti, Jun 7, 2011.

  1. bskinti

    bskinti Frequent Poster

    I'm a Sole trader (Subcontractor ) with a number of employees working on 2 school jobs, 1 very high profile job and when I went to collect a payment that was overdue last friday I was told that company was froze and NO money is been paid, that revenue has froze company over unpaid taxes, Now we cant contact anyone and company doors are closed, the jobs are still going but this company site office is empty and all plant and employees are gone not a word no phone answered, the thing they owe me about €30000 in work done, the builders this company work for knows nothing and cant see why they couild hold back money to pay us, Any advice any help what to do next?
  2. kkelliher

    kkelliher Frequent Poster

    this is a position that many many sub-contractors are having to deal with an o daily basis given the present position of cashflow and debt management by main contractors / developers in the construction industry.

    Based on current subcontract conditions there is little if anything you can do if a company goes into liquidation etc. As generally (based on stats) a contractator goes bust is as a result of bank debt, there is little if anything left over to pay subcontractors and suppliers once the bank have taken their preferential share. This results in serious issues for subcontractors and suppliers as they are so far down the chain the have little or no protection.

    if its a cae of owing revenue taxes there may be assets that could be sold in order to pay subcontractors etc but it depends on the detail of each case.

    Until you know the true detail fo the Main Contractors position it is difficult to advise on the best or indeed if there is any course of action.
  3. Paddy199

    Paddy199 Frequent Poster

    I presume its a company structure. I would do a company search, have a scan of their accounts (albeit they are probably out of date), find the directors address and pay them a visit. Only to discuss the situation of course. Maybe get them to sign a personal guarantee if they are willing to do it.