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Company being struck off but chasing debt

Debt chasing even though being struck off

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A client is being chased for a debt (over £1,500) from a company which has a compulsory notice of strike off issued against it. The strike off notice is dated today and the debt collection agent called today. Coincidence??

The contract was a 12 month rolling one which the client didn't notice. Since then the client has formed a ltd company but the contract is unfortunately still in his name as a sole trader. He tried to cancel it but was out of time by about one month so according to the debt chasing company he is still personally liable.

Does anyone have experience of getting out of this kind of contract? He has been told he has to pay within 24 hours or face a "statutory demand" notice being served on him tomorrow with punitive interest and costs. Surely this would be down to the courts? 

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RLI
By lionofludesch
05th Jul 2016 21:32

Pointing out to the debt collector that his client has been struck from the register should solve this.

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Replying to lionofludesch:
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By jaffe123
05th Jul 2016 21:46

Thanks, the company isn't struck off yet, just had the notice posted in London Gazzette for compulsory winding up within 2 months. Does that mean there is no coming back from that as it's a compulsory one?

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By Disabled Campaigner
05th Jul 2016 23:00

The debt collectors are trying to scare your client. Let them serve the Statutory Demand (but do NOT let them enter your client's home, whatever lies they may tell they do NOT have any right to do so). File an application with the court to have it set aside. Do so without delay, you only have a couple of weeks.

The debt is less than £5,000 but you would be amazed how often debt collectors threaten bankruptcy if you don't pay. For debts below £5,000 you cannot be made bankrupt, and any threat to make you bankrupt for a lesser amount is illegal.

Also consider filing a counter claim for the distress caused. You won't get it if the company is going into liquidation but it WILL mean that they have to file a defense which will cost them time and aggravation.

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Replying to Disabled Campaigner:
RLI
By lionofludesch
06th Jul 2016 09:26

Why not claim for distress against the debt collectors ?

They're the ones making the threats.

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Replying to lionofludesch:
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By Disabled Campaigner
06th Jul 2016 10:16

If I had my way debt collectors and bailiffs would be consigned to history.

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Replying to Disabled Campaigner:
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By jaffe123
07th Jul 2016 17:40

Just spoken to the Insolvency Service and they say that a Statutory Demand can be filed against an individual if they owe more than £750 but it cannot be enforced if the individual's debt is less than £5,000. These are not encouraged for debts of less than £5,000 but are widely used apparently but the creditor runs the risk of hefty court fees if the debtor is successful in getting the order set aside.
Insolvency Service says the set aside is always granted if the debt is less then £5,000 (individuals only, different rules for companies) and the creditor will have to pay all the court and debtor costs.

The debtor is encouraged to seek a set aside but if they ignore the demand and it is less than £5,000 then the creditor can do absolutely nothing about it.

Can't see the logic in allowing them to issue one for less than the £5,000 in the first place, would save everybody time and costs

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By thestudyman
06th Jul 2016 08:38

It does sound like the client is personally liable though, if the contract is in their personal name (and a new contract was not created on formation of LTD company). So it seems the debt collection agent is right.

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By Disabled Campaigner
06th Jul 2016 09:48

A company that no longer exists cannot take legal action. It appears the company will cease to exist in a few weeks. Therefore the object of the exercise is to fob them off until they are struck off.

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Replying to Disabled Campaigner:
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By bernard michael
06th Jul 2016 09:54

Quote:

A company that no longer exists cannot take legal action. It appears the company will cease to exist in a few weeks. Therefore the object of the exercise is to fob them off until they are struck off.


Unless the debt collectors have bought the debt, which means the client then owes them the money
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Replying to bernard michael:
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By jaffe123
06th Jul 2016 10:07

I think the debt collector and the company concerned are one and the same. Can't prove it, but going by the director's history on Companies House could very well be.

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By jaffe123
06th Jul 2016 10:04

Thanks everyone.
A few more facts have now come to light.

This company had my client's contract by way of a transfer from another company. My client was not given the option to agree to this transfer and did not sign anything with this new company. The new company just sent him an unsigned letter to say they were taking over the contract so not a legal contract in many ways. Just a scam company putting frighteners on people.

Faced with these facts the debt collector has gone quiet.

I could name the company here but not sure if that would be right. They sell advertising supposedly to be shown on NHS intranet. It's not, just a link to their website that you have to register on to get any info. Many complaints about them on various forums.

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By Disabled Campaigner
06th Jul 2016 10:26

In view of the new facts I suggest that your client should formally notify the debt collectors that should they again go on to his property the police will be called as their presence is not lawful.

Should they turn up ensure that he does call the police and insist that the police remove/arrest them.

All debt collectors have to be registered, report their behavior and the companies behavior to the Financial Ombudsman Service.

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Big Daddy's Diner
By mookgirluk
06th Jul 2016 16:51

Quote:

the contract is unfortunately still in his name as a sole trader. He tried to cancel it but was out of time by about one month so according to the debt chasing company he is still personally liable

If the contract is in his name as a sole trader and was never transferred to the company, then yes he is personally liable and will continue to be. The company would never have been liable, so it's being struck off would be irrelevant.

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Replying to mookgirluk:
Hallerud at Easter
By DJKL
06th Jul 2016 21:15

I read it as the company supplying the service was being struck off. That of course begs the question is it (the pursuer) fulfilling its obligation under the contract, seems difficult if it say has ceased trading?

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Replying to mookgirluk:
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By jaffe123
07th Jul 2016 12:51

It is the company that supplied the service that has the compulsory strike-off notice.

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Routemaster image
By tom123
06th Jul 2016 21:53

Sounds like a variation on the fire service diary scam if you ask me.
I can't believe there are any reputable organisations advertising internally on NHS computers?

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7om
By Tom 7000
08th Jul 2016 15:12

Agree with Tom123

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By Democratus
08th Jul 2016 15:58

"the contract is unfortunately still in his name as a sole trader. ".
Two issues then:
Confirm if the contarct is in fact in his name- if so then the Co Strike off is irrelevant.
If not, as others have said check the enforcability of the debt.

If I were owed money by a Co trying to strike off I'd certainly object to the strike off.

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By Disabled Campaigner
08th Jul 2016 18:11

Does no one actually read the question? It is very clear that it is the creditor who is a company being struck off, not the alleged debtor.

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