To the expert.We had formed a Club and rented some space so we can get together etc, apparently after 3 years we found it difficult to carry on, so we closed down.After 2 years, NPower is claiming that I need to pay the full bill - a total of £25k being one of the Club's organisers to arrange the gas/electric on behalf of the Club's members.Can you please help me out.Thanks
Hello,I will do my best to help you with this.Did the Club have a constitution, in relation to which all members were signed up?I take it that your name was on the NPower bill or was it the name of the Club?
It had a constitution - but not all members were signed up - only 5 that ran the club.
It was in the name of the Club - but they have a recording that I arranged it.
SolomonThe situation here is that you were a member of an unincorporated association (the club) which does not have its own legal personality (unlike a company). As a result, where debts are concerned, the individual members of the club are jointly and severally liable i.e. you can be sued individually and/or jointly. In this case, as only five members were signed up, I would argue that it is those five members who are jointly liable. However, it is up to the creditor (NPower) to come after you individually if they so wish. If that happened, you would have to join in to the claim all of your fellow members (the five signed up) and claim a contribution from each of them. In the first instance, I would recommend that you explain that the Club has folded etc and try to negotiate your way out of this predicament. You should also volunteer the names of your fellow members so that you are not in this alone. Please rate me OK SERVICE or above so that I am credited for helping you and I will gladly answer your follow up questions. John
Thanks for your reply.
Can I please call you to discuss it in more detail, I'm sure there must be a way around it.
Thanks so much for your help so far
SolomonUnfortunately, the website does not allow me to provide a telephone number. If I try to, it will simply be blanked out on my post. If you do have further information which could assist, please let me know and I will see if I can come up with any ideas.I also look forward to your rating please. ThanksJohn
I will rate you good, not to worry.
But I need a loop hole so I or other members don't need to pay.
Do you have assets/property with equity? Could you deal with going bankrupt and then being discharged after 12 months?
Yes. And it takes 6 years to clear off bankruptcy from the records in the UK.
If you have any kind of substantial assets, bankruptcy is not an option. Your best bet is limitation. If you can stave them off for 6 years from the date the monies were first due, you could then argue that any claim is time barred, having been brought out of time. You will need to play for time for the next 2 to 3 years I imagine. When you say you are looking for a loop hole, your problem is that you did not run the club through a company in the first place. In a sense, that was your loop hole because the company would be liable, not the members. Whenever you are liable personally for something, there is very little you can then do to avoid that liability. Moving address several times in a short space of time does tend to work though!John
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