Statutory Demand!

I am a self employed courier with around £17,000 of personal and business debt. I have taken professional advice which basically suggests bankruptcy at the earliest opportunity.

HM Customs And Excise have threatened insolvency proceedings which is worrying but ultimately will save me the bankruptcy court fees of £460.

A letter was delivered yesterday (not from the postman, but hand delivered) from someone who has been directed to serve me with a "STATUTORY DEMAND" issued under the Insolvency Act of 1986. I have to ring them if I cannot make the appointment which is scheduled for next Monday morning.

Does anyone know what this means in laymans terms? I guess its the beginning of the end but I've never heard of it before. I usually get my advice from either here or debthelpuk.co.uk website but their forum is currently inactive.

Thanks in anticipation.

Martin

Comments

  • rchddap1
    rchddap1 Posts: 5,926 Forumite
    I read up on this the other day. If I remember correctly you now have 18 days before a bankruptcy notice can be served. If you can come to some arrangement before the 18 days are up then no bankruptcy...otherwise...you're going to save £460 (looking on the bright side). Take a look on the Inland Revenue website...I found a pdf all about bankruptcy on there.
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  • jen_jen_2
    jen_jen_2 Posts: 1,032 Forumite
    as above, it will save you finding the fees if they go onto make you bankrupt.

    a Statutory Demand is just a formal demand for the money, if you dont pay it, or make arrangements to pay it (the meeting on Monday)they can go ahead and petition for your bankruptcy.
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