Company went into Administration

[Jock]

So a company i recently worked for has just announced its going into administration...nice to know considering they owe me £1600 and have done for some time now. Not only that but i've been carrying out the work constantly till last night, so they basically knew fine well they were going under but got me to do the work regardless. They even had the audacity to send though 2 new jobs last night, luckily i heard the news first.

 

Makes me sick as i needed the money in the first place, and to think of all the hours wasted, having to leave my wife and baby to themselves while I locked myself away to work....Infuriating!

 

Anyone else been in this situation?

 

I'm guessing i'll never see the money but am i correct in thinking that?

[Iain Denby]

You'll be a creditor, but you'll right down on the list. At the top will be the banks of course. I'd write it off. Sorry to hear your news. I was in that situation many years ago, and it's not a nice feeling.

[Jonathan Sanchez]

Been there too Stewart... my advice is to stop all work until they pay what they owe you. As a matter of fact, I'd consider taking the new jobs, under the basis that they pay you what they owe you. Or you can take the new work, complete it, but at the very last moment say you'll only turn in your work upon payment of debts.. or you can just accept the loss, and move on.

[Jock]

Accepting the loss is a bitter pill to swallow, albeit i have a feeling i'll have no choice.

 

I quite honestly just feel really angry about this at the moment, I find it maddening that they continued to give me work, knowing full well they had no intention to pay, and the time i took out from other, more important things like family etc.

 

Thing is the freelance side of things is more of a side business for me, with what was meant to be the view to making it more permanant in the future, but the way things are looking, its pretty bleak. All other clients have paid eventually but I've had several fights on my hands. If i done this full time, i'd be bald by the age of 35!

 

Kinda makes me rethink priorities a bit.

 

Its a shame to hear its not exactly a one off too.

[luckyluc]

Same here in Holland,

 

some clients have all the hurry to finish a project,Ask for fast service, use your work to show of to their client, and then wait to pay for 4 months( most clients are not like that here, and can be trusted)

But it is very frustrating, especially when you were in the position to choose the job (the endresult was nice for portfolio)

But hey, next time when I have to choose, i would choose a projecte of that client.

 

Good luck with it. One suggestion I would give, is call him everyday, email him, keep him busy.

[Matt Sugden]

Iwas in this situation some years ago when the first company I worked for folded. Pretty much all the employees worked for a month without any pay in the end. I was mad as hell at the time as the boss new there was no money, but looking back I feel as though if I was the employer I would probably have handled things in the same way.

 

Ultimately who ever is responsible for paying the bills is in the same situation as you, they are trying to make ends meet, so if he can get someone to put in some work in an attempt to keep clients happy and keep the business moving then he'll do whatever it takes.

 

Sounds ridiculous, but dont take it personally. If you desperatley want the cash best thing to do is to take it to the small claims court, but as someone else has said, you'll be along way down the pecking list.

[Jock]

Of course the difference is though in your example, the person paying the bills as you call him, simply ups and walks away. When you say pay bills, hes not struggling to pay his mortgage like all his workers now are, its the companys bills, which, when in administration they simply wash their hands of and walk off into the next business they try and 'save'. I dont beleive for one second the head honchos just worked the last month with no pay, and even in the best case scenario, they did, there wage allows that, most of the workers wage doesnt.

 

Getting someone to spend their time and effort doing work, you know you wont pay for is criminal, any way you look at it. The amount of other companies who will now go under because of the behaviour of this one company will be immense. And the effect on the local economy will feel this for sure.

[factorycat]

Sorry to hear of your predicament Stewart, it wouldn't be a well know supplier of high end conservatories orangeries etc would it?

[kippu]

happened to me too , a uk company again ..never going to work with the english companies

[Jock]

That would be the one yes. Worked for them myself some time ago.

[Crazy Homeless Guy]

You can setup a retainer clause in your contract for future work. Have clients pay you 50% or whatever you want up front, and then the remainder at the delivery of your project, or 1 billing cycle thereafter.

 

Also, you might want to add to your contract that if a fee goes through 2 billing cycles unpaid, then a 5% additional charge is applied to the amount owed. That may or may not help you et paid faster, but at least if you do get paid extremely late, it helps a little.