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Getting money from firm in Administration

Getting money from firm in Administration

Hi All,

I fear I will go no money back, but I want to go down the official route in order to reclaim some of my money back.

I was recently dealing with a firm and I paid them a sum of money, to which they were going to pay another firm for packaging, to which they could then produce my product. This firm have since gone into administration and therefore did not pay the other firm for the packaging, and therefore did not receive it. I have therefore paid for something I have not received. 

I am a new business start up and I would like to do everything I can to get this money back. Please can anyone advise me on the route of which I need to take to at least try. I did not make a payment with Credit Insurance or on the business credit card.

Regards,

Tom

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17th Mar 2012 16:44

was there a written contract and was the money paid into a separate trust account.Are you sure the money was not paid to the packaging company?

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By Hansa
18th Mar 2012 20:59

Make a claim to the administrator

You can lose nothing by making a claim, If the Administrator sells on the unencumbered assets, the shell of the old company will be liquidated and a distribution paid.  Having said that, unsecured creditors do not fare well in liquidations (in my own experience rarely more than 15%,  often nothing, or a negligible 1 or 2%

However, your post suggests this was not a normal trade debt in that your ultimate contractual partner was another company (which may, or more likely may not have received the funds you sent).

In these circumstances you should collect all correspondence to/from both companies and make a claim to the Receiver that the funds paid were as a payment in trust.  ie that the company in administration was not the owner of the funds and that they should either be passed to the packaging firm or returned to you.  Your case would be enhanced if the funds were in a separate account but I suspect this didn't happen.

You must however make an "official" claim on the Administrator which he should acknowledge. He may ask you to complete a proof of debt form - again do but make sure you set out the circumstances in full.

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19th Mar 2012 07:17

If you have previously dealt with the company and agreed any special terms this would be relevant.You could also argue the company was merely acting as your agent and held the money on your behalf.If you issued a purchase order any standard terms may be relevant.If the sum involved is significant it may be worth getting a solicitor involved.There may be relevant standard terms and conditions on the back of any sales invoice issued.

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