Bankruptcy - help!!

[Ap2134]

Hi,

I received a stat demand for bankruptcy yesterday from Capquest and I was wondering is this just another scare tactic from them? Have they ever actually followed through and petitioned for bankruptcy on anybody?


Could it be that Capquest are simply bluffing? Looking at this forum they seem to send out lots of these demands.
I just don't know what to do and it's stressing me out!
------------------------------- merged -------------------------------
Forgot to add: Many thanks for taking the time to read my question. All help is very much appreciated!

(Edited to remove any personal details 03 feb)

[Amy]

Re: Bankruptcy - help!!

Hi AP, firstly don't panic.

Do you have charges on this overdraft? Who did you offer the repayments to Halifax or Capquest? Have you and are you paying anything towards this?

[Ap2134]

Re: Bankruptcy - help!!

Hi AP, firstly don't panic.

Do you have charges on this overdraft? Who did you offer the repayments to Halifax or Capquest? Have you and are you paying anything towards this?

Hi,


Yes - lots of charges, I remember them being added at the time. I have no idea how the debt is broken down. I sent capquest a SAR but they never responded to me. I'm not paying anything to the debt and I have not paid anything. I've never acknowledged the debt in writing only in one phone call did I offer payment.

From what I remember (the debt is from 2006) the debt consists of a arranged overdraft, an unauthorised over draft and various charges resulting from non paid cheque fees, unauthorised overdraft fees and interest charges.


Capquest sent me the stat demand via 1st class post, not recorded - Is that grounds for setting aside? Could I argue that they are making frivillous demands using leglistation which is not designed for debt collection?


Thanks

[Amy]

Re: Bankruptcy - help!!

You need to act quickly, you only have a short time to deal with this.

Do you know what the charges amount to? When did you send Capquest the SAR?

[Ap2134]

Re: Bankruptcy - help!!

You need to act quickly, you only have a short time to deal with this.

Do you know what the charges amount to? When did you send Capquest the SAR?

I have no idea what the charges amount to, possibly over £1,000. I sent capquest a SAR 2 months ago.

[Curlyben]

Re: Bankruptcy - help!!

NEVER take a Statutory Demand as a joke.
This is VERY SERIOUS.

Nice one there Amy, I completely agree.
The applied charges are an extremely good reason to have this set aside, especially with the OFT test case still progressing.

CQ are well known to issue SD's in this manner and I advise you to report them to the OFT for serious abuse of process.

Get a dispute notice into CQ NOW and also a prelim for the charges, if you know how much they are.
Failing that SAR the bank and get the required information.
------------------------------- merged -------------------------------
Just to add, DON'T both SARing a DCA as they WILL ignore you everytime.
------------------------------- merged -------------------------------
Just to add, DON'T both SARing a DCA as they WILL ignore you everytime.

I'll draft you a Dispute letter for CQ a bit later, just putting the kids to bed.

[Amy]

Re: Bankruptcy - help!!

Practice and Procedure: Rules for the Service of Statutory Demands
Here's a very important rule. It’s IR 6.3(2). It applies to the service of all SDs but is commonly disregarded by debt collectors who use the insolvency regime as a means of collecting debts with no genuine intention of proceeding to bankruptcy.

Rule 6.3 Requirements as to service
(2) The creditor is, by virtue of the Rules, under an obligation to do all that is reasonable for the purpose of bringing the statutory demand to the debtor's attention and, if practicable in the particular circumstances, to cause personal service of the demand to be effected.

[Ap2134]

Re: Bankruptcy - help!!

Thanks a lot for the help. I'm making up a dossier based on any info you guys can give and what else I find out.

[Curlyben]

Re: Bankruptcy - help!!

Throw this at CQ:

Account In Dispute

Dear Sir/Madam,

Your ref:

Thank you for your letter of **DATE**, the contents of which are noted.


I am disputing the total value of these debts with **BANK** due to unlawful and unreasonable charges. As such, therefore, I consider this account to be in dispute and no further action or payment shall be made until this matter is resolved.
As per OFT guidelines Section 2.8k "not ceasing collection activity whilst investigating a reasonably queried or disputed debt."

Since this is considered an unfair practice and contrary to the OFT guidelines, you should consider this letter as a formal complaint, and provide me with a copy of your complaint resolution procedure.
I also require you to confirm that you will now comply with the OFT guidelines, and will not attempt any further collection activity whilst the dispute is unresolved.

Should you fail to provide me with the required undertaking within 7 days, I shall report your breach of the OFT guidelines to Trading Standards and the Financial Ombudsman Service.

This process may take some time, due to the Office of Fair Trading's test case, but I will try to expedite this issue as a matter of urgency.

I note that you have attempted to serve a Statutory Demand on myself with regards this disputed debt. Consequently I expect to achieve an uncontested set aside due to this fact with reference to Hammonds (a firm) v Pro-fit USA Ltd [2007] EWHC 1998.

"27. So far as disputed debts are concerned, the practice of the court is not to allow the insolvency regime to be used as a method of debt collection where there is a bona fide and substantial dispute as to the debt."

Take notice that I will not discuss this matter on the telephone, and all further communication must be in writing. Any telephone calls will be perceived as harassment, and dealt with accordingly.

I reserve the right to report your actions to any such regulatory authorities as I see fit.
You have 7 days from receiving this letter to contact me with your intentions to resolve this matter which is now a formal complaint.

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you would prefer to do this than merely respond with standard letters and leaflets.

I would appreciate your due diligence in this matter.

I look forward to hearing from you in writing.

Yours faithfully
BLAH (Type your name)

That should do the trick...

[Ap2134]

Re: Bankruptcy - help!!

Thank you very much, I've got it ready to send out now.
You're a star!

[Curlyben]

Re: Bankruptcy - help!!

Not a problem.
Now get a SAR into the bank and get the charges reclaim going.
Also, MONDAY, go to your local court and get the ball rolling on the set aside.
THIS IS VERY IMPORTANT

[Ap2134]

Re: Bankruptcy - help!!

Not a problem.
Now get a SAR into the bank and get the charges reclaim going.
Also, MONDAY, go to your local court and get the ball rolling on the set aside.
THIS IS VERY IMPORTANT

I'm going to go on Monday afternoon, as luck would have it the court house is 5 mins walk away.
I've got the forms printed out and I've partially filled them in giving the reasons for the demand to be set aside (IE. the debt is in dispute, the demand wasn't serviced properly and that the demand is being used as a debt collection tool).
I'm a lot more confident now.
I'll keep you guys upated as to how I go on.
Hopefully the courts will see this for what it is - CapQuest abusing a very serious system.

[Curlyben]

Re: Bankruptcy - help!!

On the service front you need to say it was UNSUBSTANTIATED service, as service by first class mail IS acceptable, but must be substantiateable, ie recorded.

CQ are unlikely to even turn up at court, so make sure you include YOUR costs for this action.

I'd say, as you are a litigant in person, 5-10 hours at the going rate of £9.25 covers you time and research

[Ap2134]

Re: Bankruptcy - help!!

On the service front you need to say it was UNSUBSTANTIATED service, as service by first class mail IS acceptable, but must be substantiateable, ie recorded.

CQ are unlikely to even turn up at court, so make sure you include YOUR costs for this action.

I'd say, as you are a litigant in person, 5-10 hours at the going rate of £9.25 covers you time and research

Okay - I've done that too, made sure to say it was an unsubstantiated service.
I've included my costs so far and stated that 24hrs prior to any hearing that I would submit a full breakdown of my costs - is that OK? Depending on the time of the service I might need to take time from work so can I add that to my costs?

[Curlyben]

Re: Bankruptcy - help!!

Rather than going for a full break down of costs use CPR in your favour as you are a litigant in person and submit 5-10 hours@9.25, much easier for a judge to understand.

Also have a read of this thread: Debt Collection Agencies Statutory Demands, a few strategies - Legal Beagles