Statutory Demand- What to do

[help_2015]

Hiya all,

 

Found out yesterday my brother has had a statutory demand for a debt he has totaling £12,250

 

He is unable to pay it in full and has no assets- he rents and has no car etc and has no savings - highest value item is his TV at £150 value so nothing of value to wipe the debt off

 

He has done a SOA and that shows he can afford to pay £300 per month which would clear the debt in 40 months

 

I am going to help him write a letter tomorrow proposing this as a repayment plan with a SOA to see if they agree to a plan instead- is it worth me copying his rental agreement/ bank statements etc which show he does not have savings/ own house etc

 

Is there a template letter for making this type of proposal?

 

Many thanks

[Old Cogger]

who issued the S D do not panic at this stage help is on its way

[Peterbard]

Is this for one debt or a number of combined ones ?

 

Are they judgement debts ?

 

Are they consumer credit related

[martin2006]

His options are a little limited, he has 21 days to oay in full or reach an agreement with the creditor, or if he doesnt agree he owes this amount he has 18 days to challenge it.

After 21 days the OC can apply for bankruptcy.

 

All that said, whats the debt all about? Does he owe it all, is any of it disputed. He will need a good reason to have it set aside.

 

Pls post as much redacted info as u can so that the correct help can be given

[help_2015]

Hiya,

 

In terms of what the debt is

 

Its a debt when he was self employed last year, from what I can gather a company has gone into administration owing £17,500 to him and in turn he has not been able to the fufill the bookings he made as a result ( events company )

 

It is one debt to one company

 

As I say he has no assets at all but does not argue he owes the debt

[Peterbard]

Hi and have they received a county court judgment for this debt ?

[Peterbard]

Hi

 

Perhaps you have seen this already it is the gov advice on SDs and contains the relavant forms.

 

https://www.gov.uk/government/publications/application-to-set-aside-a-statutory-demand-insolvency-form-64

[help_2015]

Hi

 

No it has not gone to court at any stage

 

From my reading he would not be able to set aside as he does not dispute the debt

[help_2015]

Hiya all,

 

An update on this,

 

The company that owes my brother £17,500 have written to him today offering a settlement of £13,750 payable within 56 days

 

This would allow him to pay in full the £12,250

 

If he writes and offers payment in full within 56 days and they refuse and still proceed is he able to inform the court he can pay in full in that timeframe and adjourn it until then? Will he have to pay court fees on top? - as may take him over the £13,750

 

Or is he better off offering to pay monthly then just paying in full when it comes

[citizenB]

A stat demand is not seen by the court until such times as the recipient makes application to have it set aside. Which from what you are advising would be pointless because your brother admits the debt.

 

What I don't understand is why the Stat Demand has even been issued if they are already aware that he has no assets - are they ?

 

The next step if no action is taken by the recipient is that the Creditor will make application for bankruptcy - which will cost them for no benefit by the sounds of things ?

 

Does your brother have other creditors/debts ? It is my understanding that the issuer of the Stat Demand has to advise other creditors that they are taking this step.

 

If he has other debts, might it not be in his interests that he allow the application to go forward - then all his debts can be rolled into the BR ?

 

I suggest you do nothing until others have had time to offer advice to you.

[Peterbard]

If you brother pays the amount on the SD there can be no further action, in fact if he pays just enough to get the debt under £5000 there can be no further action taken.

 

As for the set aside issue. If there is no judgment it may be possible for the recipient to say that the creditor was ignoring usual statutory procedure for debt recovery(ie through the county court) there is much precedent for this argument.

 

As he has the money to pay then i would suggest that he contact the creditor and tell them payment was forthcoming.

[unclebulgaria67]

This other company promising payment in 56 days time should not be mentioned to the creditor issuing the SD, as payment may not be received at all or may have to be pursued before it is paid.

 

Logic suggests telling the creditor issuing the SD, that there are no assets and no savings to pay the amount. That creditors who owe money are being pursued and in the meantime payment will be offered at £x per month. Perhaps a Tomlin order can be entered into if necessary, so they have some agreement between parties to keep them happy in the meantime ?

[Peterbard]

https://www.nationaldebtline.org/EW/factsheets/Pages/36%20EW%20Statutory%20demands/Page-02.aspx

 

Have a look here

[Peterbard]

This other company promising payment in 56 days time should not be mentioned to the creditor issuing the SD, as payment may not be received at all or may have to be pursued before it is paid.

 

Logic suggests telling the creditor issuing the SD, that there are no assets and no savings to pay the amount. That creditors who owe money are being pursued and in the meantime payment will be offered at £x per month. Perhaps a Tomlin order can be entered into if necessary, so they have some agreement between parties to keep them happy in the meantime ?

 

I dont agree the company have made written offer to pay the money, there is nothing wrong with showing this to the creditor to convince them to stay any further action at least.

 

If the OP were to wait until the petition is granted he will have to pay costs as well as the original debt.

The company presenting the SD will not proceed knowing that the OP can just present a promise of payment within a few days to the petition hearing.

[help_2015]

This other company promising payment in 56 days time should not be mentioned to the creditor issuing the SD, as payment may not be received at all or may have to be pursued before it is paid.

 

Logic suggests telling the creditor issuing the SD, that there are no assets and no savings to pay the amount. That creditors who owe money are being pursued and in the meantime payment will be offered at £x per month. Perhaps a Tomlin order can be entered into if necessary, so they have some agreement between parties to keep them happy in the meantime ?

 

Thanks for the reply, what is a Tomlin order?

[Peterbard]

Thanks for the reply, what is a Tomlin order?

 

It has nothing to do with bankruptcy

[Peterbard]

Sems t me there is no further [problem here, just tell the creditor that payment is forthcoming and show the letter, he will not continue.

[unclebulgaria67]

Thanks for the reply, what is a Tomlin order?

 

My mistake. This seems to only relate to a standard county court claim, where this order is agreed between parties to stop judgement going ahead.

 

If there is no guarantee of the money coming from the creditors, i just wonder how wise it is to show the letter. Perhaps showing it to them might stop them and they agree to withdraw the SD. They can then see there may be money in 56 days. If the money never materialises then you have the letter to pursue it further and advise the creditor you are doing so.