Statutory Demand (Before BR)

skylight

Morning! It may be raining, but today I am in a good mood (cos the kis are not playing up yet!)


I have recieved what looks like a statory demand. Now, it looks official etc and reads okay, but I was under the impression that statutory demands (real ones) are issued by the courts? - I am under this impression after checking the london gazette website and ALL SD's there state about a judgement from a court.

Now, this SD I have has no such thing. In the section where it states about the appropriate court for setting this aside, it simply states [YOUR LOCAL COUNTY COURT, OR COMBINED COURT.]

Its arrived in a plain envelope with no further details - only the 4 pages of the SD and a blank page with my address on it, so it has not come from a court at all.

I cannot scan the thing - I do not have one!

Am I correct in my assumptions? I am tempted to write back along the lines of Go On Then, Dare You - but that probably wouldn't go down to well!

Without being able to post the actual document here, what do you think?

angelavdavis

Sounds like either an admin cockup or a DCA pushing their luck.

If there is nothing completed at all that would hint to its source, I would put it aside.

Keep hold of it, in case there is a followup so you can prove that this was sent in error.

Sorry Charlotte, I don't know your background. Are you aware if any of your debts are likely got to this stage?

skylight

Thanks angleavdavis!

This one is just a debt that the creditor will not accept my offer of payment. All they have done so far is make lots of threats about bailiffs and attachement of earnings etc, but have so far failed to take me to court for a CCJ - it hasn't even managed to get that far.

I recieved a letter last week threatening to make me bankrupt.

Basically, I am a SAHM with over £40k of debt between hubby and I. We are paying it back slowly and the majority of our other creditors have accepted offers of payment - but not this one!

(And the threats do not scare me! A lot tougher than that! I am well aware that they are only threats and they cannot have what I do not have!)

fermi

The vast majority of 'Statutory Demands' that are issued are indeed creditors/DCAs trying to scare you. However they must all be taken seriously.

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

An SD does not have to be issued by a court.

From: http://www.insolvency.gov.uk/guidanceleaflets/dealingwithdebt/howtomakesomeone.htm

The court will regard an individual as being unable to pay his/her debts if either of the following occurs:

• A creditor who is owed more than £750 serves a 'statutory demand' for the money due and it is not paid or secured (for example, by a guarantee to provide something else of the same value); or a settlement is not agreed, within 21 days, and the debtor has not applied for the statutory demand to be set aside.
• You can get the form for a statutory demand from your local court or The Insolvency Service website at www.insolvency.gov.uk. The forms for the statutory demand are:

• Form 6.1 - to be used for a debt for a specific amount which is payable now;
• Form 6.2 - to be used for a debt of a specific amount which is payable now following a judgment or order of court;
• Form 6.3 - to be used for a debt that is payable in the future.

The completed form must usually be served on the individual in person. The creditor must have proof of service, so it is usual to employ a process server to carry out this function (these are listed in Yellow Pages under 'detective agencies'). The court is not involved in the issuing of statutory demands, so no court fee is payable.

Service of the demand by post/hand would also appear to be acceptable, as long as the issuer can swear a subsequent affidavit to the court that the demand was received on or before a specific date.

I would seek urgent advice from National Debtline or CCCS in order to get professional advice on the validity and likelihood of enforcement of the demand.

Eager_Elephant

Hi charlotte,

Is the DCA Connaught Collections by any chance?

I am a money adviser and some of my clients have bought me in statutory demands which say they will be made bankrupt.

I rung the company and asked when the bankruptcy would go through as it would save me the hassle of getting my client the deposit and the man said no we have to do more investigations first and then proceeded to ask me questions about my clients assets.etc. Obviously I told him where to go but very politely.

I did not pursue it any more because I got the deposit for my client and bankruptcy was what she wanted anyway.

For information the statutory demand does not have to come from the court, if you have still not paid in full within 21 days that is when they go to court and issue a creditors petition against you.

Can you give me more info on the creditor, how much you owe, whether they have a CCJ against you and also whether you dispute the debt or whether you actually own it?

Do you own your own home or rent, if you own how much equity do you have?

Sorry for all the questions but this must be addressed as quickly as possible. Don't panic though as some DCA and banks use this as a debt collection technique.

EE

fermi

I should add that rog2 is one of the best people here (apart from the CCCS posters) to advise on SD's, since he was bankrupted by HMRC who issued an SD on him. Hopefully he will spot this thread and add his advice.

skylight

I have what is titled as form 6.1 - so they can issue it without a court, so It could be genuine.

Payplan have already recommended BR last year so its something I have already faced, just not something that I particularly wanted to do if avoidable.

Thanks everyone!

skylight

Right - more posts before mine!

The debt is indeed Conaught Collections, on behalf of 1st Credit who bought the debt of £1800 (mine and is mine) from Barclays.

Personally, I am a stay at home Mum. My only income is child benefit and child tax credit (tax credit is a joint claim, so only half is technically mine). We do not own our own home and live in rented-council accomodation.

I have no assets really. £1k in an ISA and no cars now. I did own a Hyundai, but that we transfered in Hubbys name a few weeks ago. Not because this came up and trying to avoid assets, but because he drives that car and car insurances were incredibly cheaper to insure a car in his name and not someone elses. We are plannning on transfering his Galaxy into my name for the same reason (Have not done so yet). Galaxy is P reg, 120k miles and worth about £1500 tops in its current state. Having 5 kids at home, we rely on a big car!

I/We are dealing with our debts - the majority of creditors have accepted offers and payments have been commencing for some months. The credit ratings are shot to pieces with defaults everywhere, but no CCJ's at all.


Hope this give a little more info!

AGB863

Actually - if Connaughts ( who dish out Stat Demands like sweets to frighten people) were to make you bankrupt, would it not be doing you a favour?

As you have said - you have no assets and it will cost Connughts to make you bankrupt in the first place.

Just to check, Connaughts are well known for chasing debts that are over six years old.

Is this debt recent, ie you have acknowledged or made any payments to this debt within the last 6 years?

skylight

The debt is within the last few years and I have asked for the CCA which they provided a few months ago.

And BR would make life easier for me although not really wanted. (Although I am aware of floggin dead horse etc and just biting the bullet if need be).

Thanks!

Eager_Elephant

Hi charlotte

I am not saying 100% that they won't make you bankrupt but I would say it was higher than 50%.

Sending stautory demands appears to be one of their collection procedures, it's funny actually because everything you mentioned from Connaught Collections to 1st Credit was exactly the same with both my clients.

Actually one of my clients cannot read and so she did not realise until she came to see me how important the document was and she's had the letter for 6 months, I was hoping they had made her bankrupt to save us the job of doing the paperwork!!!

The thing that made me laugh during the telephone call was that Connaught Colelctions had not done any research into my clients circumstances but I suppose if you send out 100 stautory demands then of them at least 10-20% will not want to be made bankrupt (jobs and homes to protect) so will either pay in full by borrowing or will increase their offer.

Continue to send your payment to them and eventually when they realise you won't increase the offer they will either accept or send the debt back.

If Payplan recommended bankruptcy is this something you have looked into much?

EE