Worried and need advice

richnemma · 17 May 2008 at 10:54PM

My husband has recieved a Satutory Demand under section 268(1)(a) of the Insolvency Act 1986 from Connaught Collections and I am worried and confused by it!
The form was sent to his mothers house where he has not lived for many years and is for a debt incurred around 9 years ago when he purchased a kitchen on a credit card which is in his now ex-wives house.
The debt is for £1354 and although not a major amount it is money we do not have especially with a baby on the way.
The demand states that he could be made bankrupt and property and goods could be taken away. Bankrupcy is not a road we want to go down as we will need to eventually move to a bigger house with the family expanding and to be very honest I do not want my property and goods under threat for a kitchen his ex-wife has!!
Please advise as this is causing me stress I could really do without and my husband doesnt know what to do with this as it is the first time he has heard anything from them in about 7 - 8 years. Also as it was sent to his mothers house by the time we got it the time to respond had passed.
Do we respond or do we ignore it as if we haven't recieved it? It seems a long time to leave between communications!!

fermi · 17 May 2008 at 11:05PM

Sounds like the debt is "Statute Barred".

A debt will be "Statute Barred" if there has been no acknowledgement of the debt by you making a payment or in writing within the relevant limitation period.

If you are in England/Wales then the limitation period is 6 years and you should read:

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

If you are in Scotland then the limitation period is 5 years and you should read:

Link: Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

Connaughts are notorious for using Statutory Demands as a scare tactic. I expect they are hoping to scare you into paying up before you become aware of your legal rights.

If you are unsure of anything, then give National Debtline a call free on 0808 808 4000 to talk your situation through with a professional advisor.

But don't stress too much about it this weekend.

Richard_S · 17 May 2008 at 11:12PM

Hi richnemma,

A statutory demand should always be taken seriously but they are used frivolously by some debt collectors. Take advice from one of the Debt Charities, and don't ignore it, and you shouldn't have any problems.

As fermi has pointed out the debt may even be Statute Barred, depending on what correspondence there has been between your husband and the company concerned.

Regards

Richard

debt_doctor · 18 May 2008 at 11:41AM

Hi

You could respond to the stat demand within the required 18 days of service and challenge under the defence of 'there is a substantive and triable issue about the monies owed on the basis that the debt falls within the realms of the Limitations act'

If it has been more than 6 years since you acknowledged in writing or made a payment ( beware if it was a joint loan and the other party has responded ) then it will be statute barred, but you need to be absolutely sure.

If they want to go ahead then it will cost them around £1200 to do so and you would still get this same oppertunity to present this defence at that time.

Best

DD

Worried and need advice

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