need help with creditors petition

mazlass

Thanks rog2, but the petition is genuine i'm afraid. It was hand delivered and has the court stamp. I contacted the court and our hearing date is 11th Aug. Looks like cc are going to be taking things a step further. I phoned them yesterday and they said our account is now paid in full and we will hear from their solicitors to how much we owe in costs! We cat afford to pay any more so I'm on the phone now to National debtline. Thanks again

fatbelly

This is so unusual (I agree with Rog) that I'd be interested to know: who was the creditor that Connaught were acting for and how much was the debt?

I see these SDs so often from this bunch that I don't pay much attention to them - mind you, most of my clients want to go bankrupt but can't find the fee!

Might be good news for them if Connaught have the money to spend on the petitions.

mazlass

The creditor was tsb and the amount about £3500, most of it BANK CHARGES! It may be good news for some of your clients but its been an absolute nighthtmare for us.

Contacted National Debtline today- advised cab. Hopefully see someone tomorrow.

jude47

Hi Mazlass

Good grief - they want you to pay costs for their incompetence? Any decent solicitor would make mincemeat of them on the day - I wish I lived near you, I'd represent you myself! Right, CAB are terrific but they're swamped at present and you need help right now. Contact Community Legal Advice (CLA) on 0845 345 4 345. They'll signpost a local solicitor who will help you with this. It's government funded, free and confidential - lines are open til 8.00 so ring now!!

Good luck and let us know how you get on.

Jude x

mazlass

Jude, thank you so much for your message. I have phoned CLA and they are fantastic. They have got straight onto it and i feel like i am actually getting somewhere now. They are looking into it all for me and are going to phone back later. I'll let you know the outcome. Thanks again.

rog2

mazlass wrote: »

Jude, thank you so much for your message. I have phoned CLA and they are fantastic. They have got straight onto it and i feel like i am actually getting somewhere now. They are looking into it all for me and are going to phone back later. I'll let you know the outcome. Thanks again.

That is good news indeed, maz. It is extremely unusual for a creditor to petition for a debtor's bankruptcy for a 'debt' of just £3,500, although not unheard of. It will cost CC £590 for Court Fees, plus associated Solicitor costs, making a total cost, to them, of up to £2k. They will have absolutely no guarantee of getting any of these costs, or the original 'debt' back as a result of your bankruptcy, since the Official Receiver would divide any 'siezed' assets equally between ALL of your creditors, after deducting their costs. CC would have to take their place in the queue and the fact that it was they who petitioned for your bankruptcy would not give them any preferential status.
Also, and looking at what you have said, even if it went to the Bankruptcy Court hearing, the judge would, as he did to me, ask you if you agreed with the claim and if you were able to pay, or make an offer to pay, the claim. If, as I feel he inevitably would, he felt that CC had acted, in any way, unfairly, then he would dismiss their petition and come down on them like a 'ton of bricks' for costs.

mazlass

Thanks Rog2 and everyone who has helped. The lady from CLA phoned and has basically said that we have to pay the court costs in full or bring them below £750 to stop the bankruptcy petition. Otherwise its offering them repayments, if they will accept them. I have searched this web site and found someone in similar position and her costs were over 2K. Still not heard what ours will be. We are away on our hearing date so cant attend court. Dont know what to do now because we cant raise that amount. Just have to hope its a more reasonable sum.

rog2

The 'Court' costs should be no more than £590.00, maz. The 'unknown' factor will be the associated solicitor costs, but even these should be subject to 'reasonable costs' - perhaps CLA can advise on this.
I find it hard to believe that CC will not accept any offer of payment, and I still feel that their treatment of you, by serving a petition for bankruptcy when you were making agreed payments, is abysmal and needs to be discussed with a debt charity to see if CC can be brought to book for for blatantly ignoring the OFT Debt Collection Guidelines.

mazlass

Just spoken to connaught, been told by them that our account with them is paid in full and we dont owe them any more money. We owe their solicitors Moorhead James the fees. If this is the case then Wouldn't that meen that the Bankruptcy hearing should be cancelled? Any thoughts?

rog2

Were Moorhead James named as solicitors on the Statutory Demand or the actual petition, maz?
If so, then you should make ALL enquiries direct to them.
I have just 'googled' Moorhead James and the 'Legal Executive' for Debt Recovery/Litigation is a David Rabbit - tel 020 7400 5049 - email: [EMAIL="david@moorheadjames.com"]david@moorheadjames.com[/EMAIL].
Might be worth contacting them directly, but only after seeking legal advice on the actual situation from CLA.