Statutory Demand Advice

Arnold03

Hello, bit of basic background - Husband has become very poorly and as such has liquidated his company in December and liquidators are going through the process . Two of the company debts have had personal guarantees - one was for a van finance and one for a loan (he gave a personal guarantee based on the equity in the home) House has been up for sale since December - the family have officially moved out and we have lowered the asking price but as yet no interest in it. 

The van has been returned and today he has received a Stat Demand for the outstanding amount alleged to be approx 15k, and the other loan is approx 100k - 

If the house sells at the reduced amount it will clear the mortgage  and the large loan and likely the van (just)  Husbands intention is to do this. Mortage company have reduced payments to help and the large loan have not chased yet although I would expect this to happen soon. Husband will be keeping them all up to date.

As it stands it may be that husband now considers personal bankruptcy he was genuinely hoping that house would sell and he could walk away having paid off mortgage, loan. Now with this van situation (van has been given back and there is no mention of this in the demand letter - or any reduction in amount owed to show it has been given back)

So the question - he is aware of the consequences of the bankruptcy, he has no other debt other than a personal loan which is paid each month, - should he file for bankruptcy himself, or wait for it to happen? He is poorly and I do not want letters and threats to make the situation mentally worse for him.

We did think if the house did not sell then bankruptcy would have be what would have happened,  in an ideal world - he would simply like the house to sell and this will clear both, but since the SD arrived it looks like time may not be on anyone's side.

Looking at the info he has 18 to ask for it to be set aside (on the basis the house equity is worth more?)  does this in essence mean if granted it would give him time for the house to sell (ultimately the larger debt might come calling first or mortgage company) 

IF he decides that BR is the best option would it simply be better to pay the BR fee and just go that route, in which case, he simply hands keys bank and provides the large loan and van loan with proof of BR and then that is all sorted with official receiver? OR should he do something with the SD first, HE has not responded to the creditor yet there is no one living in the property that is up for sale and the creditors do not have the address of where husband is residing and he does not want for them to have it (he has no car or savings) Any advice is welcome - my gut instinct says pay the BR and walk away - but am I  missing anything obvious ... he knows it will mean his credit rating will be ruined but he will not be interested in getting on housing ladder again. Any advice welcome  - in particular to the SD - does he ignore or is there a beenfit to setting aside - should he reply to the creditors solicitors and ask for time, and then off house doesn't move in next few weeks, he would then have to be be looking at BR anyway? 

ManyWays

If he ignores the SD, the creditor may make him bankrupt anyway. There are no advantages to filing for bankruptcy himself rather than be made bankrupt, he would have to pay the fee. 

Is he able to work? Is your current housing acceptable? 

For anyone else reading this and panicking, this is NOT a normal loan situation. Business debts where there is a personal guarantee and much more likely to result in bankruptcy.

RAS

Please talk to businessdebtline.org

Your husband's debt are not covered by the consumer debt regulations.

Meantime secure alternative accommodation and my best wishes for your future.

Arnold03

Hi Ras, Thank you, I will speak to them but what do you mean?