Help - Statutory Demand

CallyF · 10 April 2008 at 7:40PM

Hi

Please help: I have just received a statutory demand today from Connaughts Collections and I do not know what to do. The amount is 20,198.50 and it’s on behalf of 1st credit. I do owe the money but I can’t afford to pay it back. I work in a good job but day to day bills and being a single parent of 2 makes it impossible to pay the money back. I took out the loan over 4 years ago because I was young, foolish and stupid and as the bank was throwing money at me I thought why not… I bitterly regret it!
I have not paid a penny to them since 2004. The loan was initially to Alliance and Leicester and it went round the houses and it’s now with Connaughts.
I have read some of the thread here where they state that you should ask for the SD to be set aside but then I read some that says if you acknowledge the debt within the 6 years you have to pay it back. I was hoping that maybe if I ignore the SD I would be ok but knowing my luck, I doubt it. I do not want to be declared bankrupt but at the same time can not afford to pay the money back.
I have not called the Debt advisor yet but will be doing that tomorrow
Any help will be greatly appreciated.

Thank you

sparrabeth · 10 April 2008 at 7:49PM

Hi Cally.

Welcome to MSE

Is there a reason why they would make you bankrupt? Do you have a property with equity or another asset they could realise?

There are few creditors that follow through the threat to make you bankrupt unless there is something to gain from it. It costs them around £1500 to make you BR when all the court fees etc are included so there has to be something in it for them.

Your debt advisor will be able to give you some more advice about how to deal with this.
xxx

So_Sad_Angel · 10 April 2008 at 7:55PM

Hi CallyF & welcome.

Call one of the charities below...I found that Nat Debtline offer immediate advise whereas CCCS & CAB are appointment only.. speak to as many people as you can & make sure that you are comfortable with the remedy offered.

Take care, Angelx

ps dont know why this font looks like this!!!!

Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
National Debtline - Website: National Debtline Telephone: 0808 808 4000
Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre

fermi · 10 April 2008 at 8:05PM

So_Sad_Angel wrote: »

ps dont know why this font looks like this!!!!

You are stuck on *bold*.

Hi CallyF.

You've been given the best advice. Talk this through with a professional advisor ASAP to see if they think you should take action yourself on this.

[strike]Con-artists[/strike] Connaughts seem to use Statutory Demands as a terror tactic against people because they cost nothing to issue, don't have to go through the court, and they don't have to follow them through. They know that just the word 'bankruptcy' scares the life out of a lot of people.

The only case I can remember that 1st Credit/Con-artists have actually gone ahead and bankrupted someone, they made such a mess of the correct procedure that the person was able to get it annulled. And as stated, unless you have significant assets then they would be wasting their time, and forever making the loan unrecoverable.

dodecanese · 10 April 2008 at 10:53PM

Hi Cally
From what I understand- stat demands are -as Fermi says-a bit of a terror tactic- bankruptcy ( the actual creditors petition)- is generally only followed up if you have assets worth forcing bankruptcy for- ie a property with lots of equity. It costs a creditor about £1k to make you bankrupt- if they do go ahead- an OR will be appointed and will take their fees first then divide up the bankruptcy estate- there would need to be enough equity/assets for this to be worthwhile to the creditor.
I recall a CCCS advisor telling me months ago (while I was considering my own bankruptcy) that First Credit are renown for this- while you cannot assume they are bluffing- they tend to send these letters out as the very word "bankruptcy" puts the fear of God into most people. In reality- they will only enforce bankruptcy when there are sufficient assets to make it worthwhile.

CallyF · 11 April 2008 at 7:32AM

Hi all, thanks for all your comments/advice, I will be calling the debt advisor today, so hope to know what I am doing by the end of next week.

Is there a reason why they would make you bankrupt? Do you have a property with equity or another asset they could realise?

I have no property or any other asset, I do have a good job with good pay but with high cost of childcare and day to day living it's difficult for me to start making the payment. I'll let you all what the advisor say. Many thanks. Quick question, can they ask for a break down of my day to day expenses and what I get paid?

roxy84 · 11 April 2008 at 8:57AM

Hi, my Oh has a debt that Connaught are dealing with for £10k, they threatened him with a SD over a year ago and nothing was ever done about it. Then about 4 months ago someone came round to personally deliver one and another creditor put one in the post to him for £900! We havent heard anything from these companies since.
I agree with the other posters they are mostly used to scare people into paying and are unlikely to go any further.

Wibbledog · 15 April 2008 at 6:45PM

Hi, can anyone help?

First credit bought a debt of (amount removed as they monitor forum) and have sent me a statutory demand.
I can't pay it and have an agreement with Payplan for all my other creditors.
Obviously Payplan tried to give them the amount that was pro-rata for my total available amount but they wouldn't accept it.
Would I be able to get it set aside as I have obviously made an attempt to pay some or would I have to sit back and wait to see if they do try for bankruptcy? I do have a mortgage but the amount owed with the mortgage outstanding and the secured debt on it means that I am massively into negative equity.
What do people think is their likeliest course of action?
Thanks.

RAS · 15 April 2008 at 6:55PM

Hi

Stay calm until the guys get back on line later. It will cost Ist credit near enough £1500 with fees and legal costs to make you BK and they would not get priority when the OR dealt with the estate. So they would be spending money to get nothing or nearly nothing.

Can you get hold of payplan and let them know what is happening ASAP anyway, as this needs to be dealt dealt with even so.

Wibbledog · 15 April 2008 at 7:01PM

Cheers.

I have been on to Payplan but it seems the quality of staff there has deteriorated recently. They mentioned the set aside forms but were no use as to whether we could get it set aside.

Wibbledog · 16 April 2008 at 12:30AM

Just had a thought.
The Statutory demand letter says "We regret you have not chosen to contact us following the recent letter from LCS solicitors." I had phoned them after that letter. I had told them I was with PayPlan and they were in contact with them to continue the payments we had previously made to the original owners of the debt.
Would this be enough to get the order set aside?

Help - Statutory Demand

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