Directors Petition

[mlal]

Hi,

We were advised by a insolvency practitioner (1), who was dealing with our IVA, to do a Directors Petition to wind up one of our companies.

He advised us to use another insolvency practitioner (2), from a different company, who was more specialised in this. I met up with this person (2) over 9 months ago and was told to act quickly, due to the fact a couple of companies were ready to obtain court action against our company. We were short of money and agreed to pay in instalments. We paid the first £900 to practitioner (2), but we were then told by the first practitioner (1), that this person could not continue, due to pressure at work. So the £900 was transferred to him (1) and we paid a further £1800, to complete the work, Total £2,700.

We have heard nothing from the court and the company is still registered at companies house ! I have contacted both people via email, to be told that practitioner (2) has moved on from the company, but when we called the company, she was not at her desk !! and then a couple of emails from prac (1) to say money has been in the court system, but nothing has been sorted, by the court, so he will try and get the money refunded, but be prepared to wait a long time.

I know in my own mind that we have been taken for a ride, but I just wondered what I can do about it ?? We have had no receipts for the payments, but we have the bank transaction details and all the relevant emails.

Thanks, Mick

[Niobe]

Hello Mick,

No idea on this one - will keep it bumped up for an expert to reply.

[Michael Peoples]

Your IP should not be advising the company and the directors at the same time. Being sent elsewhere for company advice is correct but I see no reason why you would need to go to the expense of having the company wound up when a creditor would have done it for you.

Go back to the first IP dealing with your IVA and ask for an explanation and your money back. I would like to know how your IVA IP expected you to pay for a winding up petition while in an IVA!

[MelanieGiles]

If the company has not traded for the last three months then you can just apply to have it struck off the company register at no cost at all. I would either ask for your money back, or insist that the IP with current conduct of your case gives you a full report as to progress.

£2,700 is more than ample to cover the costs of a winding up petition - which would have been better done by a solicitor than an insolvency practitioner in any event, as insolvency practitioners do not have right of audience at Court.

[Broke of London]

Sorry to hear your problems. I hope you get a satisfactory resolution to this now you have Mel and Michael's advice.