Statutory demand

baddad_2

Hi could do with some advice.

Have today received a letter from an agency saying the have been instructed to issue me with a statutary demand for a previous debt.

If after receiving this and I cant come to some arrangement with the creditor within the 21 days alowed. Does the bankruptcy order happen straight away or do I get a further a period of time to settle the debt before the order is issued. Ie if after 21 days I havnt paid the debt will I be made bankrupt straight away or does the creditor have to apply to the court for this .

Would be most greatfull for any help or advice on this. Im hopeing the creditor will accept my offer if not want to know how long ive got before its too late.

Many thanks

fiveyearplan

Hi and welcome baddad. Its hard to tell without seeing the letter but this is probably a scare tactic. Did it come from a court or is it made to look like it came from a court. How much do you owe? It costs the creditor about £1,000 to petition your bankruptcy so many just threaten it and would never consider doing it because there is no guarantee they will get any money back if you are bankrupt and they don't get any preferential treatment to any of your other creditors.

Please try not to worry - I'm almost certain this is nothing. Who is the creditor by the way - if it isn't HMRC, your local council for council tax or American Express it is almost certain not to be genuine.

tomterm8

No, a bankruptcy order is not automatic, the creditor would need to issue a statutory demand, which you didn't contest, and then petition for bankruptcy. Most letters like that are threats which aren't acted on.

The situations to worry are when its a government debt, american express or when you own your own house and have substantial equity.

It costs the creditor a minimum of £1,600 to proceed with bankruptcy, and unless you have substantial savings it is rare.

debtinfo

If the creditor wants to proceed to bankruptcy they have file a petition that will be served upon you, in person if possible, so that does give you some further time. Have you actually received the stat demand (it is an official court document) or have they just said that they are going to get one

baddad_2

that was really quick! The letter is from an investigations agency on their headed note paper and was as follows:

Dear ****

Re Creditor -v- me
Peterborough County Court - Bankruptcy Division

I have been directed to serve you with a Statutory Demand issued under section 268(1) (a) of the insolvency Act 1986 in the above action

I have already attended at your address as above and I now have to inform you that I will attend again at your address on """"""""""". The purpose of serving you personally with the said demand.

It is my duty to inform you that should you fail to keep the above appointment or any made in lieu therof, substitueted Service of the said demad will be made, by posting it through your letterbox and the court will be asked to deem this "good service" upon you.

...


Thanks again

debtinfo

that sounds like a genuine stat demand. do you have anything that would be taken in a bankruptcy i.e. is it worth making you bankrupt

baddad_2

no - in rented accomodation and car worth nothing!

blind-as-a-bat_2

listen to tomterm8, who is the creditor and what is the amount, ignore the wording unless it bears a court stamp, wich as it does not have to be issued through a court it wont, they are just very good at making it sound as if it does;)

tomterm8

It's very important that you are home at the time they state, and if possible you should have a friend who is with you at the time to witness that fact. There were a few cases in the past where statutory demands were not served, and the process server was dishonest. The first time someone heared about the bankruptcy petition was too late.

At the moment, I really don't think you have much to worry about anyway. If you have no assets, why would they pay out thousands of pounds to bankrupt you?

Who is the creditor? What is the amount?

baddad_2

The creditor is a trade debt. Had several jobs go bad which we put right but lost money on them, was then when the slkow down in business came along was left with not enough money to pay for some of the goods.

amount owed is £5400.00

fermi

baddad wrote: »

The creditor is a trade debt.

There are a few trade creditors that have been known to go through with a bankruptcy regardless of whether they will gain by it.

Wolseley (https://www.wolseley.co.uk) and it's sub brands are one that pops up again and again.

Still, most creditors won't make you bankrupt unless you have assets to make it worth while. Would be throwing more good money after bad.

As tomterm says, make sure that someone is in at the appointed time.