Statutory Demand under section 268(1)(a) of the Insolvency Act 1986

martonic

Hi,
I have just received a Statutory Demand from 1st Credit for the sum of £10,226.88 for a Defaulted Bank of Scotland Loan (Halifax). I was hoping someone could give me some advice on how to deal with this as there is no way I can afford to pay this debt off under the terms they are demanding, immediate payment in full!!! Is there any way I can prevent them from making me bankrupt and if they did how would it affect my current and future mortgages? And what does being made bankrupt mean??
Also this is the first formal notice I have received (came via city link) and no doorstep collection has been attempted since debt was assigned to creditor on 31/07/2012.
Thanks for any advice anyone can give me.

fermi

1st Credit have been busy sending these out.

Examples.

http://www.consumeractiongroup.co.uk/forum/showthread.php?367061-statutory-demand-under-section-268-1st-credit-finance

http://www.consumeractiongroup.co.uk/forum/showthread.php?367046-Capital-Bank-Loan-1997-Statutory-Demand-by-Connaught-1st-Credit

http://www.consumeractiongroup.co.uk/forum/showthread.php?367041-Statutory-demand-from-1st-credit

Anondebtadvisor

You should seek some advice immediatley as they can make you bankrupt after 21days.

can you afford to make monthly payments to them? do you have other debts?

debt_doctor

Hi,

How old is this debt they are chasing?

Have you made any payment or written to any creditor regarding this debt, and if so, when?

You appear to have a mortgage, how much equity is there in the property?

Is there a CCJ against you for this debt?

Thanks.

DD

martonic

Loan account was started 27/09/2007 and defaulted on 24/11/2008.
I have 2 other defaulted accounts also from Halifax, 1 Current Account approx £9,000 and one credit card approx £4,800 there seemed to be a period of time when the Halifax was throwing money at me and before I knew it I was in too deep. I previously set up payments of £1 to each account after completing a means assessment but was advised by CAB to default the accounts or they would remain on my credit file for ever, these would then disappear after 6 years from default date. My house is worth approx £115,000, I have approx £66,000 owing on mortgage and £25,000 secure loan. This is a joint mortgage with my wife.
I have no CCJ's and my experian credit score is 899 (excellent) despite these accounts.
Thank you.

debt_doctor

So it seems that there is £14k equity and only half is yours so £7k available to your (potential) bankruptcy estate less sale and other costs.
On that basis, if you were made BR then the likelyhood is that the OR would (if no one was prepared to come up with, say, £ 4-5k to purchase your beneficial interest) apply for a charging order on the property rather than selling it.

If you do not want to be made BR (do you have other debts than the ones you mentioned?) then you should point out to 1st credit (as I often have to) that should they actually go ahead and make you BR then it will cost them £1500 ish and in all likelyhood would gain nothing for their money.

DD

debtinfo

How much do you owe in total to all your unsecured creditors

martonic

Approx £25,000

debtinfo

debt_doctor wrote: »

So it seems that there is £14k equity and only half is yours so £7k available to your (potential) bankruptcy estate less sale and other costs.
On that basis, if you were made BR then the likelyhood is that the OR would (if no one was prepared to come up with, say, £ 4-5k to purchase your beneficial interest) apply for a charging order on the property rather than selling it.

If you do not want to be made BR (do you have other debts than the ones you mentioned?) then you should point out to 1st credit (as I often have to) that should they actually go ahead and make you BR then it will cost them £1500 ish and in all likelyhood would gain nothing for their money.

DD

Hmmm 7k is touch and go in my opinion as it may have grown to 10k by the time it is revalued at the 2 year 3 month mark. Of course it could quite easily have less equity by that point instead.

debt_doctor

debtinfo wrote: »

Hmmm 7k is touch and go in my opinion as it may have grown to 10k by the time it is revalued at the 2 year 3 month mark. Of course it could quite easily have less equity by that point instead.

Fair point.

DD

debtinfo

Hang maths alert there is 24k of equity rather than 14. That's a bit weird DD that we both read it wrong at the same time