Just received Statutory Demand - Help what do I do please

worried_again

I'm really confused.

Never had one of these things and have no idea what they are. It came in a hand written envelope delivered 'by hand' from someone from BW Legal.

It was dated September 17th 2012 - but was delivered this morning.

It relates to 2 credit card debts that Lowells and their other names have rung me about on numerous occasions. They seem to ring and send a letter then I get no contact for 6 months.

Then today out of the blue I get this arrive on my doorstep.

I thought the next step is to go to court for a CCJ and me reply to the court with an offer to pay what I can afford - which at present is very little I'm afftraid.

I have a joint mortgage with my wife which has been on 'interest only' for the past 12 months as we have been really struggling

So what is this STATUTORY DEMAND and some threat of 'filling in numerous forms' and bankruptcy.

Can anyone guide me as to what to do next - please....?

Thanks

RAS

When did you last pay anything towards these credit card debts?

fermi

See this link ---> Dealing with a statutory demand

Plus especially if you have any equity or property, then heed the warning in this link.

--> https://forums.moneysavingexpert.com/discussion/3824951

If they think you have equity/assets then they could quite possibly follow through and make you bankrupt.

Are the debts yours? If so, when were the accounts taken out? When did you last acknowledge them in writing or make payments on them?

worried_again

I should imagine 3-4 years ago when the account was with Barclaycard. I've never paid Lowells anything. You know what its like, you suddenly get a call or an letter saying its now been passed to us - ie they've bought the debt, but never anything further from Barcalycard.

Ive never had one of these before and dont know what they are.

I am paying HSBC back for another c/c and loan that got out of hand and I defaulted on and with that I got a very reasonable and manageable offer to pay monthly.

I have had CCJs in the past and assumed - maybe niaively - that at worst I would get a letter from the court, to which 'd offer an acceptably monthly amount - get a CCJ against my name etc.

But this Statutory Demand is something new is it? It looks much more serious and did not think they could do something like that for a credit card or unsecured debt.

I AM REALLY WORRIED

worried_again

We do have a mortgage, which is a real struggle to pay and we've been on interest only with the mortgage company for the past 12 months and its about to go back up to its original level of payment which is going to make like REALLY REALLY difficult

I work for myself but am getting half what I was a year ago - my wife works which she never used to

fermi

Is there equity in the property though? And if so, how much?

worried_again

Oh yes just thought of something.

The Statutory Demand was for just over £2500 which was for two credit cards - Barclaycard and Capital One.

The Capital One card was ages ago, must be close to being statute barred (6 years is it). I had considered claiming back penalty charges on it as the credit limit was £200 and the last figure they quoted me as owing them was over £600, so the huge bulk of that would have been charges/fees etc.

The Barclaycard credit limit was £1000 so the £2500 that they are claiming is made up of an awful lot of charges.

Does this extra info make much difference?

worried_again

Yes there is equity in our property, I'd guess around £60-70000, we have £130000 outstanding on mtg and value is c £200k

fermi

Well, I can see why they might want to go for bankruptcy if you have large amounts of equity like that.

With a CCJ the most they might realistically hope for is a charging order, that they may well not be able to get an order for sale from.

With bankruptcy, the OR or trustee will want the equity to pay your creditors and their fees. And if necessary they can sell the home regardless of your wishes.

worried_again

Oh my God really?

WHAT AM I TO DO?

RAS

Technically they can make anyone bankrupt for a debt exceeding £750.

There are some court fees and legal costs so it is not worth it when there is no equity.