Builder closed their company to dodge your claim? You still have options.

You hired a builder. The work is poor, unfinished, or the trust has gone and they have stopped responding. You decide to pursue a claim, only to find that the limited company they were trading under has been dissolved. The website is down. The phone does not ring. And then, often, you notice the same director or owner has popped up running a new company offering the same services under a near-identical name.

It looks like a dead end. It rarely is.

UK law gives homeowners several routes to keep a claim alive after a company has been dissolved or struck off, including restoring the company, pursuing the directors personally, and using the rules against so-called "phoenix" companies.

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Key points to consider

• A dissolved limited company does not automatically end your claim. Restoring the company to the register is a powerful tool that lets a creditor continue an action.
• In specific circumstances, directors can be held personally liable for the debts of the company and for poor conduct, including under the rules on wrongful and fraudulent trading.
• If the same director has opened a new company with a similar name or offering the same services as the dissolved one, they may be in breach of the phoenix-company rules and can face civil liability and even criminal charges.
• Personal undertakings given by a director or sole trader can still be enforced even if the company itself has been dissolved.
• Even if you believe the builder cannot be found, solicitors have tracing tools that locate individuals with a very high success rate.
• Directors who have acted poorly can be reported to and investigated by the Insolvency Service, which can lead to disqualification and, in some cases, contributions back to creditors.

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Why speak to a law firm?

Every case turns on its own facts. The right route depends on the paperwork, the timing, and the conduct of the director, which is why tailored legal advice matters more here than in most consumer disputes.

Your assigned solicitor can:

• Collate the relevant information and trace the parties involved.
• Review your contract, invoices, and correspondence.
• Explain your rights against the company, the directors, and any successor company.
• Outline the options available, from company restoration to a personal claim, and the likely cost and timeline of each.

The law firm can also handle the follow-on work, including applications to restore the company, claims against directors, and complaints to the Insolvency Service.

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What we offer

• A panel of independent, vetted solicitors and law firms, all ready to guide you through the process and ensure you understand any legal jargon.
• A prompt and efficient way of obtaining the legal guidance and support you require.
• No obligation to proceed once a quotation has been received.

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Important

The information provided here is for general guidance only and does not constitute legal advice. For legal advice, please contact us to arrange a consultation with a regulated solicitor.

Contact us today to arrange a confidential review with a qualified legal professional.