Ric's bankrupt thread #2

[ric]

About 10 days between payment and notice of liquidation.
Catch is, if the directors admit to trading insolvent, us as consumers/creditors then have the ability to raise the corporate curtain and sue the directors personally.

In my case, being so close together, there would be an option for this but im not one to jump around sueing people. Not worth the effort for 700 odd bucks.

Comes around goes around as far as im concerned. Old mate mr director would have 30+ pissed off employees from what i could see looking through the factory to worry about first.

[ric]

The only way consumers can protect themselves is if the money is held in trust until product is completed and delivered

Its easy to say that i shouldnt of paid upfront, but from the business point of view that leaves them at risk. The only neutral way would be the trust.

[PixieAU]

ric if you paid on credit card you might be able to claim insurance against the card

[Jarrah Jack]

Jack that's a slightly different thing.... a deposit would be the normal thing for _almost_ all businesses wouldn't it?

But some want money up front. That is presumably because they have custom stuff that if the customer balks they are stuck with.

It's the old problem of balance between risk and reward ( ie they will get more customers without the up front hurdle). The customer decides if they want to take the risk of insolvency in the business. Mostly it's a safe bet but as here, it can go wrong.

Unless the up front aspect was a recent change, then the business didn't do it to screw customers, but rather to protect themselves from being screwed.

I feel for Ric and hope he gets a good resolution but unless the up front was a recent thing I still can't see it as a deliberate low act.

Please understand that I have no stake in any of this... I just think its probably not a deliberate low act.

Truly hope it goes ok for you Ric, and I would gladly ante up my $10 if you decide you can accept our collective help.




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You didn't read my reply. I have a custom business and have always been in a custom business of one form or another. Get someone to pay up front for a house and see how you go, a kitchen? nope, no way. A 50% deposit would cover costs and also makes the customer reluctant to walk away from that amount.

Have you run a custom business or are you just guessing?

That's it for me anyway. I think Ric's a gentleman the way he's handled this, I don't think the business owners were. Simple.

[AnthonyL]

Sorry you got ripped Ric, it has happened to me too and I didn't get a cent back.

What really sh*ts me is that a lot of the time they go belly up and start up again in their wife or brothers name.

[WalrusLike]

You didn't read my reply. ........

Have you run a custom business or are you just guessing?

That's it for me anyway. I think Ric's a gentleman the way he's handled this, I don't think the business owners were. Simple.

Yeah I did read your reply.... and yeah I did know you have a custom business.

I don't. I did have a business but I failed at it.

I agree Ric is handling it like a gent.

I still don't think it's 'Simple'

But I could be wrong.


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[WalrusLike]

Oh.... it just occurred to me that folks might incorrectly infer from my comments above that I failed in business and left folk out of pocket..,

The opposite... my business failed and owed no one any money (or goods) except me....


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