Wife received a Stat Demand for BR

philhoward

Help..not sure which way to play this one..

My wife has received a Statutory Demand for Bankruptcy via an old debt from Nat West, passed to CapQuest Debt Recovery in October last year. My wife and I have a joint bank account, but thats about the limit of our financial "joining" - except her Incapacity Benefit of about £100/week is paid into the joint account (she's been signed off since June 2003 with Depression).

The debt was for a bank account she had, which had no overdraft facility - the debt is (bar about £100 which they let her draw out in cash) pretty much all charges and interest.

The main mortage is in my name only - but (stupidly) we took out a secured loan out on the house in joint names in 2001; due to be finished next October.

What do I do? My wife won't speak to anyone who rings the house, let alone her ring them. We now have 10 days to contact the court to request it be "set aside" - whatever that means? Otherwise it says they will possess goods and property!! The only thing she owns on paper is her car - which she may need at a moments notice to attend to her 78 year old mother.

Any guidance greatly appreciated - we're sorting most of our debts out one by one, yet this one's come pretty much out of the blue. Pay £3k or else. If I had £3k, it would have been paid!

Dez-Titute

For £100 Whats tthe problem ?

philhoward

If they only wanted the £100 or so, then no problem - i'd pay it.. They're demanding the £3k+ - pay or bankruptcy

RAS

Phil

Have they supplied the proper Statutory Demand?

It should look something like this: http://www.insolvency.gov.uk/pdfs/forms/6-1.pdf

Please give an expert advisor a call to discuss the best approach. National Debtline Tel: 0808 808 4000 (free) are probably the best placed to advise.

Nicked from a fairymist's thread, thanks to fermi.

RAS

Hi

Here is the thread http://forums.moneysavingexpert.com/showthread.html?t=949327

philhoward

RAS,

The letter is in that format and ,unlike that other thread, my wife did (does) have a debt to NatWest. Will try and give debtline a call tomorrow - work permitting (I have to work long hours so day to day money worries are something my wife doesn't need to worry about).

DaveBrum_2

A lot of the time, creditors issue stat demands as it's cheap to do, scares you and makes you pay up. It's very rare that a creditor will send you bankrupt, as they will be writing their own debt off and paying for the privelage!!!

philhoward

Would it be possible that because of the joint "mortgage" they could see this as guarantee that the debt could be able to be paid off by forcing the house to be sold? Or am I reading too much into a hard handed ploy by them? If they looked into things properly then they'd know she earns nothing and is unable to work due to strees-induced depression.

RAS

Hi

They would not be able to force the sale of the house. Irrespeitive of the fact that the mortgage is in your name, there might be benefical interest, which the OR could ask for to pay off the debt. You would be able to buy her BI.

More importantly, can you start a bank charge reclaim on her behalf? And you need to sort out the SD ASAP (like first).

debt_doctor

Hi , you mention an 'old debt from Nat West' - how old exactly ?

DD

philhoward

My wife hasn't worked since January 2003 (hence no income to the account since then) but I don't know the date the account went into default (or even what year). All the docs state is that the agreement was made in 2000, and the rights to this debt were passed to CapQuest in October 2007

Ras - What's "BI"? COuldn't find it in the Glossary thread. The main mortgage is in my name, but the second mortgage is in joint names.

The legal jargon has got me totally confused - all i can make out is to either a) contact CapQuest or b) apply to the court to have it set aside with an Affidavit (what ever one of those is). Do i contact CapQuest or the court first?