Advise Please - A Little Scared

Doe_Eyed_Emma

Firstly let me give you some background. I have trolled on this page for a while and taking some of the advise I sorted my debts out by approaching Payplan and got the to sort out the accounts.

I have now been making payments for a few months and felt relativley happy, I was clearing my debts (ok slowly) and finally loosing some of the stress.

I then get a letter through my door saying the person was writing to say they have been instructed to issue an insolvancy demand on me. I phone payplan to track down what was happening.

Natwest had recently returned all of my payments for no reason (payplan and myself had crossed them calling me to explain) So I phone Natwest for advice and am told that Shoosmiths are dealing with the case.

I phone Shoosmiths and am told that they had tried contacting me over the last year but I had ignored them completely so they decided to take action as I had ignored the CCJ they had issued.

I questioned that I had been talking to Natwest (As had payplan) and they had not mentioned shoosmoths until i asked about this demand and also I had never receive a single call or letter from them.

After a long talk it turns out that Shoosmiths had been given my old address from about 3 years ago and had sent all the info there.

I call payplan back and explain and they have since contacted Shoosmiths. Today I receive the actual demand and again i cann shoosmiths/payplan etc to sort out the situation but the person dealing with the account is not in.

Sorry for waffling but hears my concerns.

1/ Why did Natwest not tell me when i contacted them and Payplan contacted them that Shoosmiths were dealing with it?

2/ Why did Shoosmith get given the wrong address so they had no what of contacting me thus making them thnk I was ignoring them?

3/ How come the company that issued the demand got the right address?

4/ Is there anyway I can now acvoid the Bankruptcy. I do not wish to go bankrupt as it will mean I can not progress any further in my career?

5/ I have a unique situation at the moment that I own an old Espace (i need this for work) but my mother had bought an old N reg Audi. Shes learning to drive and it was cheaper to put the car in my name until she passes the test and can take it herself. Payplan are aware of this and all the costs (repairs, tax insurance etc) are paid by my mother just the car is mine in name only. As they are now going for Insolvancy they will count that as an asset and my mother can loose her car. If i hand it back to her they will say I getting rid of my assets before everything is frozen.

Im very scared at the moment as I could now be on the verge of losing my career and my mothers car. If anyone can give me any advice as to what I can do to be able to at least save her car and prefereably avoid the bankruptcy?

Thanks for reading through this and any advise is gratefully recieved.

Emma

NekoZombie

Doe_Eyed_Emma wrote: »

Firstly let me give you some background. I have trolled on this page for a while and taking some of the advise I sorted my debts out by approaching Payplan and got the to sort out the accounts.


Emma

You have trolled on this page??? :eek: Do you mean that? :eek:

fermi

NekoZombie wrote: »

You have trolled on this page??? :eek: Do you mean that? :eek:

I think/hope she means 'lurked'.

NekoZombie

Hmmm

you've asked a couple of questions we don't really have a hope of answering, namely:

1/ Why did Natwest not tell me when i contacted them and Payplan contacted them that Shoosmiths were dealing with it?

2/ Why did Shoosmith get given the wrong address so they had no what of contacting me thus making them thnk I was ignoring them?

3/ How come the company that issued the demand got the right address?

These questions are best directed at Natwest/Shoosmiths.

4. I'm sure you can avoid bankruptcy if you can demonstrate that you have not had a fair opportunity to address this issue due to mistakes on their part. Again, you need to correspond in writing with Shoosmith's/Natwest.

5. Assuming you cannot come to an agreement with Natwest/Shoosmith's, you will need to explain the situation regarding the car to the O.R. Providing you can back up your story with, for example, statements, I can't see that there will be a problems. OR's are usually quite understanding.

fermi

Firstly is the Statutory Demand (SD) legal? By this I mean, is issued by a court, and is it dated and stamped by the court.
If it is not, then it is not legal.
It is a common tactic for creditors to send out unstamped SD's, or letters only informing the debtor of the 'intention' to issue a SD.

Secondly if it is legal, Natwest/Shoosmiths should really withdraw/set-aside it in your circumstances. If you have kept all correspondence with them and Payplan, then you have good evidence that you have acted in good faith.

If they should refuse:

This link has VERY good advice on SD's and the process that follows.

http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.htm

In particular it gives you info on how you can get a SD set aside by the court yourself, and for what reasons. This includes issuing in error.

It also tells you exactly what steps to take to avoid the process proceeding to bankruptcy. This includes arranging a reasonable repayment plan in instalments.

This means that unless you ignore the issue, and that you deal with the creditor/court reasonably, it will never reach the bankruptcy stage.

I hope this helps

fermi

This is good info to have on the board anyway, as it approachs BR from a slightly different angle.
C/P'd from previous link.

Statutory Demand
Introduction to Statutory Demands

A statutory demand gives a person 21 days warning to pay the debt. After that the statutory demand has runs it course and it can followed by a bankruptcy petition.

In the minds of a creditor or a creditor’s solicitor a statutory demand is the legal equivalent of a 'warning shot from a gun'. This is because the average debtor is so scared by 'what may follow' that they usually pay up.

In fact statutory demands are so successful that in 99% of cases following the issue of a statutory demand a bankruptcy petition NEVER is issued.

Many creditors are so shrewd that use various internet websites to let the banks, credit reference agencies and other public interest groups to publicise the statutory demand which can be disastrous for someone.

* What is a statutory Demand?
* Why are Statutory Demands to powerful?
* What is the point of a statutory demand?
* What is the Statutory Demand procedure?
* When is a statutory Demand a threat?
* How to reduce the risk of bankruptcy following a statutory demand.
* The procedure to get a statutory demand set aside.
* What are the time limits to get a statutory demand set aside?
* What forms must be used to get a statutory demand set aside?
* Can the court dismiss an application to set a statutory demand set aside?
* What forms are typically used in the statutory demand process?

What is a statutory Demand?

A Statutory Demand is the first step to bankruptcy against an individual and this is prepared and served without any court involvement. A statutory demand can be served as soon as the debt is due and a judgment is not necessary. If the debtor disputes the claim, he or she can apply for the statutory demand to be set aside. The bankruptcy court will halt the bankruptcy if there is any dispute about the sum outstanding. It can be relatively easy for a debtor to have a statutory demand set aside and the process can result in an order for costs being made against the creditor.

Please note that a statutory demand in 90% of instances is 'bluffing technique' used to scare a person into paying up. If a bankruptcy petition does not follow then this will become apparent.

Why are Statutory Demands to powerful?

* The Statutory Demands procedure is simple to implement.
* To issue a statutory demand all you need to do is complete a form.
* You can send a statutory demand by recorded post, without the need of personal delivery.
* You do not need a solicitor to issue a statutory demand.
* You do not need to pay expensive court filing fees issue a statutory demand.
* People assume that a solicitor has been utilised so get scared and pay immediately.

What is the point of a statutory demand?

A statutory demands is supposed to make sure the person in debt pay the amount owing this is either carried out by paying in full or:-

1. It is a way to get the debtor to offer his or her property as security or;
2. It is a way to get the debtor pay up in another agreed way. Such as instalments.

When is a statutory Demand a threat?

* A statutory demand is something to worry about if your debts are over, say, £1000.
* A statutory demand is a threat if the person after the debt is wealthy enough to carry out the bankruptcy threat the whole way.
* A statutory demand is a cause for concern if the person after the debt is bitter and angry enough to actually make you bankrupt.
* If you are a home owner or actually have assets you are at risk of losing if you go bankrupt then a statutory demand is a threat.
* The person you owe the money to knows you are a home owner or have assets therefore is willing to spend money making you bankrupt.
* If your reputation is at risk by the public finding out about the statutory demand process being started against you.

How to reduce the risk of bankruptcy following a statutory demand.

* To avoid bankruptcy reduce the debt to less than £750.
* Offer to pay the debt by instalments.
* Make a reasonable offer to settle the debt.
* Apply to have the statutory demand set aside

The procedure to get a statutory demand set aside.

After the period of 21 day from the statutory demand being served the person issuing the statutory demand may begin the process that petitions the person’s bankruptcy.

One method of avoiding bankruptcy is to get the statutory demand set aside.

To successfully get a statutory demand set aside one or more of the following must be satisfied:-

* The amount stated on the statutory demand is disputed.
* The person issuing the statutory demand also owes money. This is called a counterclaim.
* The person issuing the statutory demand is holding security that equals or exceeds the amount owing.
* The demand was issued in error.
* The amount owing is less than £750
* Execution has been stayed on a judgement debt.
* The debtor is complying with an instalment order. This would mean the debt is not actually owed as it is being paid back.
* The creditor failed to comply with the rules and prejudiced the debtor in the process.

What are the time limits to get a statutory demand set aside?

An application to set aside must be made with 18 days of the statutory demand being served.

What forms must be used to get a statutory demand set aside?

Forms 6.4 (application) and 6.5 (affidavit) must be completed and taken to the court.
Can the court dismiss an application to set a statutory demand set aside?

Yes, if application if there are no reasonable ground to do so.

What forms are typically used in the statutory demand process?

1. Form no: 4.1
Statutory Demand under section 123(1)(a) or 222(1)(a) of the Insolvency Act 1986
2. Form no: 6.1
Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately
3. Form no: 6.2
Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately Following a Judgment or Order of the Court

Copyright © 2006 - The UK Insolvency Helpline - All Rights Reserved

NekoZombie

Good stuff fermi!

Doe_Eyed_Emma

Thank you all for your advise you have calmed me down quite a bit.

Nekozombie and Ferni - Yes I did mean lurking

Fermi - Thank you for that link its been very helpful.