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  • FIRST POST
    • Wilding
    • By Wilding 8th Jan 18, 5:14 PM
    • 11Posts
    • 0Thanks
    Wilding
    Statutory Demand received. What is the time limit?
    • #1
    • 8th Jan 18, 5:14 PM
    Statutory Demand received. What is the time limit? 8th Jan 18 at 5:14 PM
    I received a Statutory Demand (SD) a few months ago which is a prelude to a bankruptcy petition.

    I ignored it because I don't oppose a bankruptcy. I have no assets or property. It just writes off the debt.

    However, the creditor has not petitioned.

    If there a time limit on an SD after which they must start the petition?
Page 1
  • National Debtline
    • #2
    • 8th Jan 18, 5:49 PM
    • #2
    • 8th Jan 18, 5:49 PM
    Hi Wilding


    A creditor is usually expected to apply for bankruptcy within 4 months of the statutory demand being issued. If it takes them longer they have to explain the reasons why to the court. Some creditors issue statutory demands as a scare tactic and don't follow through with bankruptcy, although some companies that were doing this on a widespread basis were cracked down on.


    If you want to go bankrupt it can be advantageous the creditor applying, as it saves you finding the fees. I would always suggest getting some specialist advice on the full ins and outs of bankruptcy as there are downsides. You can get this kind of help from one of the free debt advice agencies if needed.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Wilding
    • By Wilding 8th Jan 18, 6:00 PM
    • 11 Posts
    • 0 Thanks
    Wilding
    • #3
    • 8th Jan 18, 6:00 PM
    • #3
    • 8th Jan 18, 6:00 PM
    Hi, I researched the ins and outs of BR and it suits me to have the creditor petition it.

    I only have one creditor, and no assets or income. It's a clean straightforward BR.

    My question is whether there is a time limit which a petition must be made after an SD is served.

    It's leaving me in limbo not knowing whether a BR is going ahead. I've cleared bank accounts and cannot use them until the SD expires, or the Insolvency Service grants me the use of a bank account.

    Official legal advice cannot find an answer to this.
    • sourcrates
    • By sourcrates 8th Jan 18, 6:22 PM
    • 14,370 Posts
    • 13,554 Thanks
    sourcrates
    • #4
    • 8th Jan 18, 6:22 PM
    • #4
    • 8th Jan 18, 6:22 PM
    Hi Wilding


    A creditor is usually expected to apply for bankruptcy within 4 months of the statutory demand being issued.

    Susie
    @natdebtline
    Originally posted by National Debtline
    Hi, I researched the ins and outs of BR and it suits me to have the creditor petition it.

    I only have one creditor, and no assets or income. It's a clean straightforward BR.

    My question is whether there is a time limit which a petition must be made after an SD is served.

    Official legal advice cannot find an answer to this.
    Originally posted by Wilding
    Hi,

    National debt-line has given you an answer above.

    Certain aspects of debt solutions, inc Bankruptcy, are covered by guidelines rather than out and out rules.

    It could be your creditor was bluffing, you could write to them and ask what the situation is, as you need to ascertain your position.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 8th Jan 18, 6:40 PM
    • 12,361 Posts
    • 9,403 Thanks
    fatbelly
    • #5
    • 8th Jan 18, 6:40 PM
    • #5
    • 8th Jan 18, 6:40 PM
    Following the excessive use of these things a few years ago the OFT made firms aware that they should only use them where they were seriously considering bankruptcy. This fed through to the FCA guidance

    A firm should not make undue, excessive or otherwise unfair use of statutory demands (within the meaning of section 268 of the Insolvency Act 1986)
    when seeking to recover a debt from a customer.
    but it's going to look a bit odd if you contact them to insist they make you bankrupt. Maybe use reverse psychology and as them not to!
    • Wilding
    • By Wilding 8th Jan 18, 6:48 PM
    • 11 Posts
    • 0 Thanks
    Wilding
    • #6
    • 8th Jan 18, 6:48 PM
    • #6
    • 8th Jan 18, 6:48 PM
    I'm inclined to agree with fatbelly. I've stayed silent, but I want to know if an SD becomes statute barred sooner than the 6-year Limitation Act. I don't want 6 years of uncertainty.

    They either petition or I do it.

    The answers here suggests there is no official limit on an SD which I can hold a petitioner bang to rights.

    Can anyone point me to the "guidelines". I'll see if there is a limit set by them.
    • fatbelly
    • By fatbelly 8th Jan 18, 7:11 PM
    • 12,361 Posts
    • 9,403 Thanks
    fatbelly
    • #7
    • 8th Jan 18, 7:11 PM
    • #7
    • 8th Jan 18, 7:11 PM
    https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter45/part10/part_10.htm

    https://www.justice.gov.uk/courts/procedure-rules/civil/rules/insolvency_pd#III
    • Wilding
    • By Wilding 8th Jan 18, 8:03 PM
    • 11 Posts
    • 0 Thanks
    Wilding
    • #8
    • 8th Jan 18, 8:03 PM
    • #8
    • 8th Jan 18, 8:03 PM
    That is very good information.

    It only says the petition can be filed after three weeks. It doesn't say when the SD expires at which the petition may not be filed.
    • sourcrates
    • By sourcrates 8th Jan 18, 8:05 PM
    • 14,370 Posts
    • 13,554 Thanks
    sourcrates
    • #9
    • 8th Jan 18, 8:05 PM
    • #9
    • 8th Jan 18, 8:05 PM
    That is very good information.

    It only says the petition can be filed after three weeks. It doesn't say when the SD expires at which the petition may not be filed.
    Originally posted by Wilding
    Grey areas exist in most parts of government legislation unfortunately.

    Id go with Fatbelly view on this.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
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