Threat of Statutory Demand

getmeouttahere

My company ceased trading about a year ago and when I informed one particular creditor, they began threatening a statutory demand on me personally (as I am a personal guarantee for the finance). We have been going back and forth trying to agree a suitable payment plan and due to the severity of the situation, I ignored StepChange's advice of £1 per month to ALL creditors, I offered this particular creditor £100 per month, which I would take from food allowances.

The creditor said that they would accept this if StepChange agreed, which they obviously won't do, so I told them in October that StepChange won't agree, but I'd still like to make the same offer. They never got back to me despite my chasing them at the end of October.

Fast forward to today, and the Debt Collection Company have emailed me for the first time since end of October saying that as I've made no payment, they will be issuing me with a statutory demand which will be served on my in person in due course.

I intend arguing my case in that they've not provided any agreement to the offer I made and not provided me with any payment details, but I'm just wondering what will happen if they do server me with a statutory demand.

As of April 2015 this particular debt had a balance of £3,767, and I've just read that in October 2015 the government changed the law so that a debt had to be £5,000 in order for a statutory demand to be issued, so any ideas why they are still threatening one?[FONT=&quot][/FONT]

fermi

See: https://www.nationaldebtline.org/EW/factsheets/Pages/36%20EW%20Statutory%20demands/Page-04.aspx

If they issue a SD, you can have it set aside and perhaps even claim costs against them for doing so. May be worth warning them that you will do that.

National_Debtline

getmeouttahere wrote: »

My company ceased trading about a year ago and when I informed one particular creditor, they began threatening a statutory demand on me personally (as I am a personal guarantee for the finance). We have been going back and forth trying to agree a suitable payment plan and due to the severity of the situation, I ignored StepChange's advice of £1 per month to ALL creditors, I offered this particular creditor £100 per month, which I would take from food allowances.

The creditor said that they would accept this if StepChange agreed, which they obviously won't do, so I told them in October that StepChange won't agree, but I'd still like to make the same offer. They never got back to me despite my chasing them at the end of October.

Fast forward to today, and the Debt Collection Company have emailed me for the first time since end of October saying that as I've made no payment, they will be issuing me with a statutory demand which will be served on my in person in due course.

I intend arguing my case in that they've not provided any agreement to the offer I made and not provided me with any payment details, but I'm just wondering what will happen if they do server me with a statutory demand.

As of April 2015 this particular debt had a balance of £3,767, and I've just read that in October 2015 the government changed the law so that a debt had to be £5,000 in order for a statutory demand to be issued, so any ideas why they are still threatening one?

Hi getmeouttahere


I expect they simply haven't kept track of the October changes to the threshold for threatening bankruptcy. You would be surprised how many debt collectors this seems to have passed by.


Once they realise their error, they'll have to consider their alternatives i.e. taking action through the county court, or simply reaching a repayment agreement with you.


Dennis
@natdebtline

getmeouttahere

Thanks to you both. Under the circumstances, do you think it would be more sensible then to let StepChange negotiate the payment arrangement with them?

sourcrates

getmeouttahere wrote: »

Thanks to you both. Under the circumstances, do you think it would be more sensible then to let StepChange negotiate the payment arrangement with them?

Now you know what a complete bunch of idiots your dealing with.

Don't offer them anymore than any other creditor, if they went legal, the court would agree to what your paying all the rest of your creditors.

Make them suffer for there ignorance.