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Bad Debts - Legal?

  • 07-01-2010 1:53pm
    #1
    flash harry
    Closed Accounts Posts: 511 ✭✭✭


    is there anything you can do if you know someone is going out of business but they are paying off other people before you? Basically prioritising others as they think they'll need them but your expendable/replaceable in future?

    FH


Comments

  • #2
    seamus
    Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    No, not a whole lot you can do. Who else they are paying is none of your business from a legal POV.

    If he was paying associates or family members specifically because he knows that there will be no money left after liquidation, then there may be company or anti-corruption law that can be applied, but I don't know if a creditor can begin proceedings on these.

    All you can do is pester him so that he'll give you money to stop you ringing him every day.


  • #3
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    This is not legal. It is hard to prove. If the guy is still trading whilst he is hopelessly insolvent he is opening himself to personal liability. That said, it's expensive in practice to pursue this.

    After the liquidation, you could write to the liquidator and the ODCE and there is a possibility that they will disqualify him from being a director of another company.


  • #4
    padser
    Registered Users, Registered Users 2 Posts: 2,375 ✭✭✭padser


    flash harry wrote: »
    is there anything you can do if you know someone is going out of business but they are paying off other people before you? Basically prioritising others as they think they'll need them but your expendable/replaceable in future?

    FH


    Completely disregard advice above and talk to a solicitor quickly.

    It is completely illegal for a company that is insolvent or heading to insolvency to prioritise some creditors over others - it doesn't matter a toss whether those creditors are relatives etc (bizzare notion that it would)

    AFAIK courts / liquidators also have powers to retrospectively recover monies that were used to pay off certain creditors first and re distribute them. In practice though - clearly the earlier you can get good legal advice the better. For example I think you can register claims with courts etc.


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