Statutory Demand On Personal Gurantee

[tsew1]

Hi all, I have had a statutory demand hand delivered to me via Shoosmiths solicitors in relation to a 35k debt from a Natwest Business Banking loan that I am a personal guarantor on. To cut a long story short I took out the loan with an ex business partner and we are both guarantors on the loan. However I liquidated the business nearly a year ago and now Natwest are chasing for the outstanding debt. Here is the issue, I don't want to be made bankrupt but I have no way of paying that debt. I earn £600 per month and I have no assets, no car no house, nothing that I own. I want to know what is my best route? Should I send a letter to the solicitors explaining my situation? Should I get my own solicitor involved (which I can't afford)? Any ideas/advice would be very welcomed. Just on a side note my ex business partner has some assets. I look forward to some positive responses. Many Thanks.

[pt2537]

If youve been served with a stat demand you have 18 days to apply to set it aside or the other-side can present a petition for bankruptcy.

I would say the first thing to do is look at whether the loan and PG are enforceable, ie whether the conditions required to be entitled to payment have in fact been met, i dealt with a natwest case a couple of years ago where they overlooked the basics and it cost them dearly.

Do you have the documents? if so, can you post redacted versions so we can see what we are dealing with?

[2222]

"I earn £600 per month and I have no assets, no car no house, nothing that I own."

At first sight, that looks like a compelling line of defence. However, the creditor may wonder whether there has been some divestment of assets**, which could be investigated and unravelled if the OP is made bankrupt. So, they might just press ahead anyway. Undermining the PG, if possible, would be better.

** What would have been the point of the PG in the first place if the OP had so little in the way of assets at the time?

[tsew1]

Here is the document from Natwest which was included in the Stat Demand.

[pt2537]

Here is the document from Natwest which was included in the Stat Demand.

ive tried looking at this but its too small on the screen im afraid.

[Amethyst]

tsew1 do you want to email me the full size pics and I'll get them sorted out so they are more readable admin@legalbeagles.info

There's quite a lot of focus on taking independent legal advice in the documents - the waiver document particularly - do you recall if that was actually the reality or if it was more a 'sign here, here and here' matter ?

Do you know if your ex Business Partner also has a stat demand?

[tsew1]

Amethyst I've sent them via email. Everything was sign here and here. From my memory they only gave us the loan based on my ex business partners assets. I had nothing at the time. So maybe they just put me as a gurantor for admin purposes or to tick a few boxes, I'm not sure.

In relation to my ex business partner I'm pretty sure he would of recieved a stat demand but I can't be sure as we no longer speak to each other.

I've not replied to the demand yet but I want to take some action asap so any advice would be great.

[Amethyst]

[Amethyst]

pt2537

That's better thank you - so you don't recall discussion about seeking legal advice ? ( as it's quite clear on the documents I don't know how much affect that actually could have if it went to a court claim )

more important at the moment - was the stat demand served on you on the 9th ?

[tsew1]

The letter was hand delivered on the 5th October, but it's got August on the date which is weird? It was a while ago so I can't be sure on what was said at the time of signing.

[Amethyst]

The 18 days is from Service so that's okay, you have a few days left to get the set aside in, they are quite often written a lot earlier and take a while to be served.

pt2537 to have a look at the better quality PG.

[tsew1]

What are my next steps?

[pt2537]

its not just a gaurantee, its an indemnity too, primary and secondary obligations, how long do we have to reply to the demand? Im a little snowed under at this minute and would need to do some research on a couple of points

[tsew1]

I think I only have until Tuesday to reply

[Amethyst]

pt2537

For set aside of a statutory demand it is normally enough to show that there is a valid dispute over the claim / amount owed meaning it should go through the court system instead. However the indemnity could ramp up costs. Hopefully Paul will get chance to have a look by Monday.

There doesnt seem seem to be a huge point in bankrupting you considering your financial circumstances - are the bank aware ?