Statutory demand

[Welshsquire]

Good morning to everyone. I’m a new member and unfortunately my business has ceased trading after 12 years. I did everything I could to keep it alive but the downturn in sales was just too great.
I have a question and wonder if anyone would be kind enough to help. A debt collection company has express their intention for a personal debt of £12000 to “instruct a process server to attend my address for the purpose of serving you with a statutory demand issued under the insolvency act 1986 (Bankruptsy) “ My question is as this will cost them the Bankruptsy fee are they likely to do it? Also can they do that without going through the normal county court process. Many thanks.

[Amethyst]

This is a personal debt ? A guarantee for a loan for the business or a personal loan / credit card ? If you tell us a bit about your debt we might be able to help you challenge it and hopefully put them off using the bankruptcy process preferring to go through the county court.

Do you own your house ?

So yes they can send a statutory demand and if you fail to have the statutory demand set aside they can apply for bankruptcy. Yes it will cost and the fee however if you own property assets etc and they think they will be able to recoup their £12,000 then they may see it worthwhile doing so. There is no need for them to go through the court unless you show the bankruptcy court that the debt isn't suitable for bankruptcy e.g. there is a dispute on the amount of the debt being legitimate etc

Also can you say who the debt collection company are.