11 Plus Exams Forum

Hi all! Can anyone help or advise me on my options. I owe company to a drainage company who did some work on the drains on my street. They had told me that I would be covered by my home insurance but I wasn't. As the work was required for the whole street I did not have the option to opt out. I was then left with a £5000 plus bill. I came to an arrangement with the company to make payments on a monthly basis. But now 2 years later I have received a letter from the administrators of the company requesting the full outstanding balance approx £2500 within the next 14 days. I can't afford to pay this in one lump sum. So what are my options?
Should I write to the administrator and negotiate a smaller amount or more time? Or should I just not pay? After all I doubt that my debt would be worth chasing too much?
Any opinions?

I would contact Citizen's Advice Bureau

I'm about to go out so can't research thoroughly, but have you looked at the insolvency dept web site (it is a government department), I remember someone asking something similar but not the same some years ago on a different forum and I found the answer on there.
My brother works for them, if he was the sort of brother I kept in contact with I'd ask direct.

yoyo123 wrote:I would contact Citizen's Advice Bureau

I did try them when I first found out that I would have to pay because I only agreed to the work on the understanding that it would definitely be covered by my buildings insurance. They were not much help.

Tinkers wrote:I'm about to go out so can't research thoroughly, but have you looked at the insolvency dept web site (it is a government department), I remember someone asking something similar but not the same some years ago on a different forum and I found the answer on there.
My brother works for them, if he was the sort of brother I kept in contact with I'd ask direct.

Will have a look, thanks

If the company is in administration then your warranty on the work done has gone, the administrator won't want to throw good money after bad chasing you, so send them a payment in full and final settlement. If they bank the cheque then you are 90% in the clear.

I'm usually on the other end and watch as companies that owe me money go into administration and all the funds raised go on admin expenses.

stevew61 wrote:If the company is in administration then your warranty on the work done has gone, the administrator won't want to throw good money after bad chasing you, so send them a payment in full and final settlement. If they bank the cheque then you are 90% in the clear.

I'm usually on the other end and watch as companies that owe me money go into administration and all the funds raised go on admin expenses.

But I can't afford to pay £2500 in one lump sum? And don't know how I would get it in 14 days. Are you suggesting I make them an offer as full and final settlement? I've got no idea how much to offer!

I think Steve is telling you to make 'a' payment, as in pay them what you can afford ( and presumably a reasonable amount, taking into account the sum involved),

For future reference, don't take anyone's word for it that your insurance will cover anything. ALWAYS check with the company. everyone has different levels of insurance and, as you found to your cost, they don't cover everything.

Hope you get it sorted.

Thanks Snowdrop - yes I have learned that lesson the hard way. But I was in a catch 22 as the work would have gone ahead with or without my agreement. The majority of the road is council owned and they had authorised the works. My neighbours insurance company paid out but not mine as they said the damage occurred before I owned the property so before the policy was in force.

http://www.bis.gov.uk/insolvency" onclick="window.open(this.href);return false;

I can't find a direct answer, but they may be able to help you.