Statutory Demand threat

[Katiebw]

I received a letter of claim from a collections agency in December re an unpaid school debt from 4 years ago. I had felt my son was about to be expelled from a school he had been in for 11 years and moved him without giving a terms notice. I had had no contact re the debt since jan 17 and had largely forgotten about it if I’m honest. I responded to the agency and completed their paperwork, not committing to owing the money but asking for more info for example a copy of the signed contract and a breakdown of the £2k in charges added since. I had no response or acknowledgment but have instead received a letter threatening serving of a Statutory Demand issued under the Insolvency Act 1986 (Bankruptcy) unless payment is made within 7 days.
I am at an absolute loss re this. I am not sure how to proceed or how to get the info I need and get more time to organise myself. For example, I am sure that the original contract was signed by my sons father too. He and I had a court order in place agreeing to split all fees although his rarely transpired.
My financial circumstances have changed hugely for the worse in the last 4 years. I liquidated my business and I have no assets. I have no income beyond household expenditure.
I do not want to be forced into bankruptcy and would like to manage this debt. Ideally I would like to deal directly with the school and come to an arrangement. I am feeling harangued and bullied by the collections agency. They are members of FCA but this debt isn’t covered by those rules. I can’t see what the point of them forcing bankruptcy would be. Any advice much appreciated.

[ULA]

Tag Celestine

[Celestine]

Hi - sorry to hear you are experiencing this problem.

For a debt to be suitable for bankruptcy, it must be due and payable immediately. As this debt is aged, disputed and has had little communication, it could be suitable for a set aside application if you do receive a stat demand.

In the meantime, I would recommend contacting the school to discuss a more suitable resolution. Your lack of property ownership makes you unsuitable for bankruptcy and your finances will not achieve the desired result, so other options should be considered by school and debt collectors.