If you receive a stat demand from BW then it isn't an empty threat they have instructions to take it all the way through and in reality are incentivised to do so due to the costs they can rack up if a bankruptcy order is made, this is particularly relevant if you have a property with equity in it.
Most Law Firms / DCA's work on commission now pre bankruptcy order so you could make the argument that the financial incentives for them are to make people bankrupt due to the recipricol nature of the industry as they have more currency to give out to the IP's they represent in other areas, plus the costs schedule they put in are far greater than the percentage recovery they make on the face value of the debt and rarely challenged by the Trustee in Bankruptcy.
Follow all the advice given, demand paperwork, apply to set this aside and in the unlikely event they get their ducks in a row and defeat your application send in an I&E and make a monthly offer which will be accepted due to the risk averse nature of their client, if they dont accept it email the Lowell Directors direct and complain.