Statutory Demand

rhowes2000

Good afternoon all,

I have received a letter this morning from Connaught Collections saying that they are going to issue a Statutory Demand under the Insolvency Act 1986 (bankruptcy) as they are unaware of any valid reason for my non-payment.

Are they basiclly saying they are going to make me bankrupt and are they able to do this?

CLAPTON

this is basically a threat to make you respond and to pay them some money but any creditor can you make you bankrupt if you owe more than £750 and do not pay

Harassed_2

Would need a bit more history on that, but most likely they are trying to frighten you. They could, in theory, bankrupt you - any creditor could. However, most won't.

rhowes2000

Thank you, I am annoyed by it as I have sent several letters saying I can't afford to pay it but I am willing to make a reduced monthly payment, I have had no response whatsoever until this letter.

rhowes2000

It's a debt from HSBC that started in 1999 I was no longer able to afford it from around 2001 and I have made repayment offers without reply.

THE_LONE_RANGER_4

as far as from what i was told any creditor can apply to make you bankrupt but the courts would not allow it in most cases unless it was for a very large amount and there was no possible chance of paying anything or was this wrong info ?

Addicted2Chocolate

i disagree with lone rangers post. a court has to make the bankruptcy order if the creditor has properly issued a stautory demand, which was not paid, followed by a bankruptcy petition, which has not been paid, then if the debt is over £750 the court will likely make the bankruptcy order. From what you say you cannot afford to repay the debt, if you have defaulted on the agreement this means you are unable to pay your debts as and when they fall due, this is the definition of insolvency and what the bankruptcy legislation is there for.

fatbelly

Is bankruptcy an option for you? If so, they are offering to save you £460 in fees.

I have several contacts who would love one of their creditors to issue a statutory demand.