Chased for school fee debt

KatieBW123

  Thank you so much for these responses. I took the advice in this answer and returned the paperwork requesting more info, ie the signed contract. I did not commit to owing the debt but asked for more info. I up had no response and have been chasing. However! I have received a letter from the enforcement dept today, giving me until next Thursday to pay the debt in full. “It is our intention to instruct a process server to attend your address for the purpose of serving you with a Statutory Demand on behalf of our client; issued under the insolvency act 1986 (bankruptcy)”. 

Not sure why they have ignored my request for further info. Feel utterly depressed at this - at this time - and very uncertain re my legal position. Please any advice?

fatbelly

I don't know if you've said how much this is, but they can only do this for a debt of over £5000.

They can indeed serve a statutory demand without a county court judgement. In that case it is going to be the judge who considers your response to the stat demand that will listen to your arguments, should they move it to the court stage..

This is a good tactic from them if you actually have assets.

This is a bad tactic from them if you have nothing and were considering bankruptcy anyway

This could still be a bluff. Issuing the stat demand costs nothing but lodging it at court could cost over £1000. Did they send a pre-action letter and response form as I linked to earlier?

This is still the dodgy debt collector or is it a solicitor?

Did you talk to National Debtline as I suggested earlier?

sourcrates

How much is the debt for, because you didn`t mention it before ?
For a Statutory Demand to be issued, the debt must be over 5k.

You (the debtor) have 3 main remedies for dealing with a Statutory Demand. 

But these actions must be taken early:

• Make arrangements to pay all or part of the debt
• Dispute the debt either partially or entirely
• Pay the debt immediately

I would urge you to take legal advice on this, as a matter of urgency.
It could be a bluff, but do you want to risk bankrupcy over this ?

KatieBW123

I have no assets. The original debt was less than 5k but costs and interests take it to just under 7k. 

sourcrates

KatieBW123 said:

I have no assets. The original debt was less than 5k but costs and interests take it to just under 7k. 

If you can get the debt below 5k, the threat of bankruptcy recedes.
Is that a possibility ?

KatieBW123

But arent  they - the collections - legally obliged to act on my request for further information? They have totally ignored and gone to this. 

fatbelly

Going this route is an expensive way for them to go and if you don't have assets (or surplus income) then they might never see the 7k. 

If bankruptcy is not a threat to you (doesn't affect your job, no asset to lose) then you could tough this out.

You could write and say that you intend to defend the statutory demand on the grounds that you do not owe the sum claimed and for your info I own no assets and have no income that is surplus to essential household expenditure.

If it's the case you could add 'I note you have not followed the pre-action protocol ... (see the debt camel link)'

'In the meantime if you would respond to my letters of X, Y and Z I would be grateful.'

Previous advice still stands though - worth a chat with National Debtline

*Going out now - will  check back later*

sourcrates

Well we are were we are now, what is your financial situation otherwise, do you have other debts ? you say you have no assets, so I assume you rent, would bankruptcy give you a fresh start ?
I`m just trying to get an idea of your situation, if you have a lot of debt, then why not take advantage of them paying the £680 bankruptcy fee, have your debts written off, and make a fresh start.
I can never understand creditors who issue statutory demands to people with no ability to pay, no assets, and to whom bankruptcy would probably be beneficial.

KatieBW123

National debt line were very helpful and suggested bankruptcy might not be such a scary option. They spoke about a Debt Relief Order.  I would rather avoid this though. They suggested I put together a budget sheet and let collections know I have no assets. 

They also suggested I contact the ICO for advice re my request for information- the original contract - which has been ignored or info withheld. 

In an ideal world I would just like to deal with the school directly and come to an agreement. But feels like too late for this? If there are e no assets and I’m forced into bankruptcy they won’t get their money, so feels counterproductive. 

sourcrates

National debtline a good source of information.
Not too late to make an arrangement, you have 21 days to do so from issue of the SD.