Aged debtor and payment plan

[Spidey]

If a debtor owes 100k but says unable to pay, but will on a month by month basis for 10 months. What option is left for company other than to accept. As legal could take months, years. Company has money but is using the recession as an excuse. Also demanding that his account manager leaves company or he will not pay any monies..
This is a real situation ongoing at present. Person does not want to leave. Company is based in cork...

Any suggestions? Other than what I said to her to get legal advice

 

[J.Ryan]

Get the judgement registered and then apply for them to be put into liquidation, for debts that size it is what I would do.


However if the owners/directors of the company that is owed the money, wish to accept an installment deal I would suggest that PG's from the directors of the debtor company be forced on them. I would also question how a debtor company can insist on the removal of a member of staff on a company that they owe money too.





www.jwr.ie

 

[callybags]

I would agree with J.Ryan.

If you are confident that the company has the ability to pay the full amount, a threat of an application to wind up should be enough. We have used this successfully in the past.

Are they an ongoing customer? If so, and they are a significant part of the business, consideration should be given to looking for security for any further credit that may be extended.

For that level of money, I would be looking for a Letter of Credit from their bankers.

As regards the account manager, that is a judgment call for the owners of the company to make.
How important do they value this customer?
Can the account manager be moved to look after other accounts?