I owe money to a company in administration!

[stevew61]

Are you suggesting I make them an offer as full and final settlement? I've got no idea how much to offer!

In similar commercial situations I've paid just over 50% and it has been accepted, you've already paid 50% so I'm sure anything you offer has a very good chance of being accepted in final settlement. Just make sure your covering letter makes clear it is in F&F settlement, keep a photocopy, even write across the top of the cheque in F&F settlement and again keep a photocopy. I'm sure in the short time available the administrators have bigger fish to fry and call me cynical but I bet they save the business by selling it for next to nothing to the previous directors, a phoenix. Then the old company goes into liquidation.

[PROBSNAIVE]

You have convinced me. Will get a letter and offer in the post on Monday. Will let you know how it turns out!

[mystery]

Good luck. I don't quite understand why you were having to pay 5000 in the first place for something that was outside the boundary of your property in a road which is not private. And if it was a private road is it right that it was the council agreeing the repair work?

Did the problem relate to a section of road that was private? If so, are you aware that responsibility for private drains outside your property which connect to a public sewer transferred to the sewerage companies on 1 oct 2011. Google it.


It seems incredibly expensive for a share as well. Think you need to check all this out in case something else goes wrong with your drains etc. it sounds at the moment as though the council or someone else has used you like an open cheque book.

If the damage took place before you owned the property, does that mean there was a specific event which damaged the sewers in the full length of the road, both private and council sections of the road? Or was it just old collapsing sewers that your insurance co is saying they were not responsible for ?

[PROBSNAIVE]

Hi Mystery thanks for your comment. I did take legal advice at the time but was told that I wouldn't have a case. That's is when the agreement was put in place. The insurance company was able to use some info which showed the problem was originally identified in 2004 and I bought the property in 2006. My case went to FOS but found in favour of the insurance company.

[PROBSNAIVE]

I wasn't aware in the change in law regarding private drains connecting to public sewers. This happened in 2010 and it was this particular law that was used against me to say that I was liable for the costs.

[mystery]

At least with the change in law it would seem like nothing similar should happen regarding the drains beyond your property that ultimately connect with a public drain. I can see that your insurance company may have been able to show they did not need to pay up for a 2004 problem when you bought the house in 2006 and this was not specifically covered ... but I'm wondering what can have happened to your drains - both in the private and public section of the road that was so incredibly expensive for you all, and what right the council had to dictate to the private owners what was to be done and the cost.

[Snowdaddy]

At least with the change in law it would seem like nothing similar should happen regarding the drains beyond your property that ultimately connect with a public drain. I can see that your insurance company may have been able to show they did not need to pay up for a 2004 problem when you bought the house in 2006 and this was not specifically covered ... but I'm wondering what can have happened to your drains - both in the private and public section of the road that was so incredibly expensive for you all, and what right the council had to dictate to the private owners what was to be done and the cost.

I think if the problem was known about in 2004 before you bought the house, (and clearly if insurance company knew about it, then it was documented somewhere) then you should go back to your purchase and check if it was declared on the questionaire your solicitor would have received from the house seller (your solicitor should have sent you this (or a copy) in a bundle of docs after you completed. If you dont have it go back to your solicitor. If it was on there then unfortunately you accepted the problem, if not the seller might be liable for the cost if they falsely declared, so your solicitor should recover it (with their costs covered) for you from the seller. I suspect the insurance Co letter saying it was advised in 2004 was based on info from the 2004 owner so for them subsequently deny a problem when preparing the sale questionaire would be fraud.

[Y]

Or if the solicitor had the information, but failed to notify you, then the problem is your solicitor's.

[PROBSNAIVE]

This was investigated at the time with no luck. The house was bought from a mortgagee in posession. The 2004 info was provided by the company that did the work.