Statutory Demand

cs101 · 2 February 2008 at 11:40PM

I am BR but my OH is on DMP with Payplan and she has received SD from Ist credit which is from their letter and also I have noticed that they have quoted the wrong account number from which the debt is from.

It is now over 10 days since she received this SD. Can please somebody advice me what to do with this SD. Shall she ignore and wait for actual court paper and dispute that this SD had not correct account number.

Payplan told her that they will be sending her forms 6.4/6.5 and she should go to court and present this SD to be set aside

Thanks

vivadave · 3 February 2008 at 12:11AM

If your court date is not to far away then i would keep the issue for the court to deal with, and decide the best course of action, with your OH being on DMP then i would'nt worry too much about the SD, as payplan have already advised you what to do.

I'd stick with that.

Hope that helps.

Viva....;)

debt_doctor · 3 February 2008 at 10:30AM

Hi,

Does your OH own any property or assetts or have any reason why BR would not be a good idea ? This company issues SD like confetti, and at this stage, no cost to them at all.

It will cost them around £ 1200 to proceed to the creditors petition, vert unlikely unless there are substantial assetts to be had.

DD

fermi · 3 February 2008 at 10:51AM

As debt doctor says, 1st Credit are notorious for issuing these with absolutely no intention of carrying them through to the actual petition.

If you can give us the few details that DD asked for, such as "how much is the debt? and "do you have any assets/equity?" then we can get a better idea as to whether this might be a threat that has to be taken seriously.

In case you do need them, forms 6.4 and 6.5 can be found here.

http://www.insolvency.gov.uk/pdfs/forms/6-4.pdf

http://www.insolvency.gov.uk/pdfs/forms/6-5.pdf

There is some good info regarding SD's here:

http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.htm

cs101 · 3 February 2008 at 2:14PM

Sorry for the delay.

The debt is approx 7000k and she has to buy my BI on the property which is valued at 155k and the mortgage outstanding is 150 k

Suppose if they take to her court can she fight the petiton against the BR

Thanks to all who posted here again

debt_doctor · 3 February 2008 at 2:31PM

Hi, you would have to set aside the demand. You have to do this within 18 days of the date of service. There are only certain reasons for which you can do this, and unless there is a substantial dispute about the monies owed, I dont see a reason. It is possible to offer a voluntary charge over the property, but the OR would object to that. I assume you are in no position to offer full and final or bring the debt below £ 750 so you may have to sit tight and hope.

I seriously doubt that they will proceed any further as it will cost them around £ 1200 and if there are less than £ 10,000 assetts they are unlikely to see anything for their money as the IP would take upto that amount in fees.

Hope it works out.

DD

cs101 · 4 February 2008 at 8:40PM

Thanks DD

So shall my OH go to court and request this SD to be kept aside or shall she wait for Ist credit to file for her BR and only then dispute that she is willing to pay in installments as adviced by Payplan. I am still confused

. Can she still fight her case after she gets proper court papers or not

Thanks

fermi · 4 February 2008 at 9:00PM

I would give National Debtline - Tel: 0808 808 4000 a call.

It's handy to get a second opinion. They're are busy though, so you might have to try a few times to get through.

They see plenty of SD's from first credit, so they should be able to tell you whether it worth getting set aside, and if you even have grounds to do so.

If you do have sufficient grounds it's probably worth doing since it gives you more negotiating time and shows that you're not just going to pay up in fear as 1st Credit hope you will. And it's significantly less hassle to get the SD set aside compared to defending the petition.

EDIT: And as far as I know an offer to pay by instalments is not sufficient defence against the actual petition.

debt_doctor · 4 February 2008 at 9:34PM

Hi,

Paying by installments is a negotiating tactic directly with the creditor in order for them to withdraw the SD, it is not a valid reason for a set aside.

Set aside reasons are;

geniune triable dispute about the monies said to be owed
or
you have a croos claim against the creditor of at least equal value
or
the creditor holds security which is equal to or exceeds the money owed
or
other grounds, ie the debt is statute barred, or the document is not signed.

There is no court fee for the set aside, so nothing to loose by an attempt, but would inform first credit of your consern. Its a tricky one I agree, but if it does proceed to petition you can still apply to have the petition stopped on the same grounds as above whether you responded to the SD or not.

This would be after first credit parted with their £ 1200.

Its a gamble on whether you feel they are serious, and in most cases the reason it is issued.

Best

DD

Statutory Demand

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