statutary demand

nevergiveuptrying

Hi folks

looking for some swift advice

currently in a DMP (DIY) for just over 4 years, all was going well until recently

I have 20 creditors and just over £60k in unsecured debts all in my own name

recently redone my financial statement as we came out of a fixed deal mortgage, and fuel and food has shot up etc, so my surplus income has
gone down by approx £97 per month leaving £267 to pay the 20 creditors
pro rata.

19 out of 20 have agreed to my new offers, a few complimenting me on keeping up with 4 years of no missed payments

however 1 creditor (1st credit) have refused my offer and say they will issue me with a stututary demand for full payment, and here's the best part, if i dont pay in full within 21 days that they will petition for my bankrupcy

my question is this - how likely is that

i owe them £2600 for an associates credit card, part of me thinks its pressure to get to me to pay, and part of me thinks, bloody hell i could end up losing my home if i dont do something.

it seems to easy for a creditor to issue this demand without any costs to them, and although no illegal, it isnt very sympathetic to someone who is tackling their debts, and is trying to do the honourable thing

i probably have equity in the joint home, perhaps they have had a sniff of this, but i live there with my wife and 2 children, and dont want to lose it

also this sort of puts a mockery on DMP's they can change their minds at the drop of a hat, and make my 4 hard years of paying everybody seem futile

is it likely that a debt management company would follow through with a petition for bankrupsy for a debt of £2600

i am aware i have 18 days to get it set aside, do you think i have a good case

any comments, solutions appriciated

NB compared to some creditors its a small amount and most of my big ones have been brill, jut this rude, bullying, fly in the oitment to take care of

warm regards

nevergiveuptrying

10past6

Hi

Who knows what action a creditor / DCA will take, I would think the letter you've received is a standard computer generated one.

Send them this letter by recorded delivery, see what happens:

Your address

Date

Creditor / DCA Address

Dear Sir/Madam

Acc/Ref No XXXXXXXXXXXXX

Thank you for your letter of XX-XX-XX concerning the above account.

We are sorry that you feel unable to accept the offer which we have made.

The majority of our other creditors have accepted the offers made to them and we have commenced payments.

We cannot offer you more because we can only afford £XXX per month between all our other creditors, and it would be wrong to cease or reduce payments to our other creditors in favour of your company.

The offer made to you is on a pro rata basis, as used by the county court.

In the light of the other creditors agreeing to our repayment plan, please would you reconsider our offer?

We will be making the payments in line with the offer to your company, on a weekly / monthly basis.

We look forward to hearing from you as soon as possible.

Yours faithfully

mum2one

I personally thiink they are turning the screws, and intimidadte you into paying, if it did go to court, the judge would take into account your repayment plan, and the fact u have paid for 4 yrs, for legal side of things, either check with CAB or thik its the national debt line, or even try and get a free 30mins interview with a soliciotoe.

I noticws your bying ur house, long shot but may be worth haveing a lok if you have got legal expenses on either buildings or contents ins give them a ring and ask to go down the legal route, so god forbid it did get to court you should be represented and given the correct asvice. x

stapeley

I would also do a CCA REQUEST to them , is it with a DCA ?

GeorgeUK

As Stapeley says, it may be worthwhile trying to get them to send a copy of the credit agreement (unless it was an overdraft). If 1st credit are pushing you, why not push back. If they are unable to produce a copy of the agreement, the debt is unenforcable - outside of court (where they will need to prove that the debt is yours... usually by producing the credit agreemeent)

LilacPixie

I would CCa them and send the letter 10past6 has supplied you with. 1st credit seem notorious at issueing such computer generated bluffs.

In all honesty it does sound very much like a bluff, petitioning bankrupcy for a £2600 would be a bit silly as in most cases they would only get a fraction of that back if anything at all.

fermi

nevergiveuptrying wrote: »

my question is this - how likely is that

Very very unlikely, but not impossible.

i owe them £2600 for an associates credit card, part of me thinks its pressure to get to me to pay, and part of me thinks, bloody hell i could end up losing my home if i dont do something.

They are normally used as a scare tactic by 1st Credit.

it seems to easy for a creditor to issue this demand without any costs to them, and although no illegal, it isnt very sympathetic to someone who is tackling their debts, and is trying to do the honourable thing

It is easy for them to do. And reprehensible.:rolleyes:

i probably have equity in the joint home, perhaps they have had a sniff of this, but i live there with my wife and 2 children, and dont want to lose it

How much equity?

is it likely that a debt management company would follow through with a petition for bankrupsy for a debt of £2600

Not likely. It costs them between £600 - 1,700 in up front court/legal fees to do it. They wouldn't have any guarantee of getting the fees back, let alone the original debt.

i am aware i have 18 days to get it set aside, do you think i have a good case

See: http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.php

for a list of valid reasons.

I agree that it is most likely a bluff.

Unless you have an absolutely enormous amount of equity in your property, it would cost 1st Credit a fortune to do it and they would get nothing back.:rolleyes:

1st Credit send out 1,000s of these, and I've only heard of them going through with a bankruptcy once or twice. In one of those they were so incompetent in doing it, that it was easily annulled afterwards.

Since this is a CC debt, then it may be worth requesting the CCA.

If it was me I would CCA them ASAP, and use any failure to supply the CCA as grounds to get the SD set aside. If I did that I would also claim costs against them.

But that may well be overkill on what is probably an empty threat. I'm an awkward **** and would do it just to p*** them off and send a message.:o

The best thing to do is probably give National Debtline a call free on 0808 808 4000. They are experienced with these, and will recognise the name "1st Credit" immediately.;)