Help - Statutory Demand

fermi

Have a read through: http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.htm

The procedure to get a statutory demand set aside.

After the period of 21 day from the statutory demand being served the person issuing the statutory demand may begin the process that petitions the person’s bankruptcy.

One method of avoiding bankruptcy is to get the statutory demand set aside.

To successfully get a statutory demand set aside one or more of the following must be satisfied:-

• The amount stated on the statutory demand is disputed.
• The person issuing the statutory demand also owes money. This is called a counterclaim.
• The person issuing the statutory demand is holding security that equals or exceeds the amount owing.
• The demand was issued in error.
• The amount owing is less than £750
• Execution has been stayed on a judgement debt.
• The debtor is complying with an instalment order. This would mean the debt is not actually owed as it is being paid back.
• The creditor failed to comply with the rules and prejudiced the debtor in the process.

National Debtline seem to have a better track record on advising on SDs.

Wibbledog

Thanks very much.
Any idea on whether these reptiles will actually try to chase me into bankruptcy?
A percentage idea would be nice.

fermi

That article puts it quite well.

Please note that a statutory demand in 90% of instances is 'bluffing technique' used to scare a person into paying up. If a bankruptcy petition does not follow then this will become apparent.

With 1st Credit I would say it's more like 99%.

They issue hundreds, if not thousands, of SD's. I can only remember them actually trying to carry one through once, and they made such a mess of the procedure that it got overturned.

As others have said, it would cost them a fortune in fees to do it, with no guarantee of a penny back.

But it is best to not be complacent, and take professional.advice.