Should the £750 limit for Statutory Demands be increased ?

[Nibbler]

Re: Should the £750 limit for Statutory Demands be increased ?

Example for a high limit: http://forums.moneysavingexpert.com/....php?t=5033894

[Tools]

Re: Should the £750 limit for Statutory Demands be increased ?

Results adjusted to suit both dogtired's and my own change of mind.

[Amethyst]

Re: Should the £750 limit for Statutory Demands be increased ?

In case anyone needs more examples... http://www.legalbeagles.info/forums/...ebt-1st-Credit

[Amethyst]

Re: Should the £750 limit for Statutory Demands be increased ?

Nibbler - have you updated your Lowell bankruptcy bar chart recently ? Just wondering out of interest the % of those in the consultation belong to Lowell. Should also look up 1st Credit.

[MissFM]

Re: Should the £750 limit for Statutory Demands be increased ?

As a latecomer to this thread - I voted for £20K. I think that is still very low to ruin someone, to take their home and destroy their future but certainly less unfair than £750, which is widely abused.

[FlamingParrot]

Re: Should the £750 limit for Statutory Demands be increased ?

I went for 'same as ROI' which is still above DRO and small claims threshold.

£750 is beyond ridiculous! :rant: :rant: :rant: :mad2: :mad2: :mad2:

[MissFM]

Re: Should the £750 limit for Statutory Demands be increased ?

The other aspect to this - the converse - and I'm not sure of the mechanics of it - is the misuse of the law on bankruptcy by some to get rich (eg Ltd. Co.s that go bust, serially, with the directors not liable, phoenix Co.s etc.).

I don't know whether or not this is open to abuse by individuals in the same vein, or even if the same parameters apply (question to those that do know?)

In any case, I can't see a valid argument against upping the threshold.

[FlamingParrot]

Re: Should the £750 limit for Statutory Demands be increased ?

The other aspect to this - the converse - and I'm not sure of the mechanics of it - is the misuse of the law on bankruptcy by some to get rich (eg Ltd. Co.s that go bust, serially, with the directors not liable, phoenix Co.s etc.).

Bankruptcy in the UK only applies to individuals not companies (in the US companies do file for BR). Limited companies get dissolved and the directors are not personally liable for the debts as that's the whole point. As with everything, there are two sides to the story. :decision: It's bad when you are the one who didn't get paid, but the idea is to stimulate entrepreneurship. Without limited companies, a lot of businesses would never have been set up.

As usual, the banks always come up trumps :rant: :rant: because a lot of business overdrafts and loans require a personal guarantee, thus doing away with the 'limited' part of a limited company. Furthermore, such loans and O/Ds are often secured on property owned by the company directors. In many cases, when a company is liquidated, no one gets their money except employees (who can get redundancy and wages from the Insolvency Service, which is fair enough) and the banks, who have personal guarantees and securities. :mad2:

Banks, don't you just love [to hate] them?

[Nibbler]

Re: Should the £750 limit for Statutory Demands be increased ?

Nibbler - have you updated your Lowell bankruptcy bar chart recently ? Just wondering out of interest the % of those in the consultation belong to Lowell. Should also look up 1st Credit.

Have a more recent one that that at least I think?

[Nibbler]

Re: Should the £750 limit for Statutory Demands be increased ?

OK here you go.

BIG CAVEAT -- Based purly on the petitioners name as Lowell. If they have or start using another name to petition under the stats will not be picked up. Don't think they have so far, but I won't guarantee accuracy as I can't say for certain.

[Amethyst]

Re: Should the £750 limit for Statutory Demands be increased ?

OK here you go.

BIG CAVEAT -- Based purly on the petitioners name as Lowell. If they have or start using another name to petition under the stats will not be picked up. Don't think they have so far, but I won't guarantee accuracy as I can't say for certain.

Ahh thank you Nibbler Good to see they aren't actually getting the bankruptcies as often now. Definitely a drop in the quantity of stat demands issues (well that we're seeing on here) since the FCA took over

[Nibbler]

Re: Should the £750 limit for Statutory Demands be increased ?

I should also note that the above is orders granted by the court.

Does not include cases dismissed etc, and certainly not SDs.

EDIT: Cross posted.

[Nibbler]

Re: Should the £750 limit for Statutory Demands be increased ?

Ahh thank you Nibbler Good to see they aren't actually getting the bankruptcies as often now. Definitely a drop in the quantity of stat demands issues (well that we're seeing on here) since the FCA took over isn't there.

Yes, I think the FCA has given a lot of them (DCAs) pause for thought and they are being more restrained.

[Amethyst]

Re: Should the £750 limit for Statutory Demands be increased ?

Seems to be a clear winner on the creditor bankruptcy petition limit being raised to £15,000 or £15900 (20k Euros)

Any one else wish to vote?

[andrew1]

Re: Should the £750 limit for Statutory Demands be increased ?

I'd go for £20,000. I'll tell you why later.

A1