Statutory Demand

[cassie53]

Hi,

Debt is a awful thing, and it makes you ill. Just as you sort one thing out another drops through your door. I have been delivered a SD for £2155. It came on lst December while I was at my sisters. I never came home until 4th Jan, and found it within the last 5 days, and I have just gone through all the web sites looking, and posting. I cannot get it set aside as I owe the money, it has increased with charges, but I do owe most of it. I work and I own my own home, do have a mortgage. Contacted Payplan who gave me a form with all my details of what I have to pay, (all they allow you apparently for food is £180 for the first adult and 120 for the second adult a month!) I cannot live on that even with being really economical.
so do I phone them and arrange a payment? Please someone just tell me what I need to do? I cannot discuss this with my husband, as it would make him ill, so it is just me and whoever is out there. Thank you. The debt was with citi cards and now with Hamptons.

[Latch Key Kid]

Re: Statutory Demand

Hi,

Debt is a awful thing, and it makes you ill. Just as you sort one thing out another drops through your door. I have been delivered a SD for £2155. It came on lst December while I was at my sisters. I never came home until 4th Jan, and found it within the last 5 days, and I have just gone through all the web sites looking, and posting. I cannot get it set aside as I owe the money, it has increased with charges, but I do owe most of it. I work and I own my own home, do have a mortgage. Contacted Payplan who gave me a form with all my details of what I have to pay, (all they allow you apparently for food is £180 for the first adult and 120 for the second adult a month!) I cannot live on that even with being really economical.
so do I phone them and arrange a payment? Please someone just tell me what I need to do? I cannot discuss this with my husband, as it would make him ill, so it is just me and whoever is out there. Thank you. The debt was with citi cards and now with Hamptons.

Hi cassie

Is there equity in your property and have you any other assets of any value.

Is there any way you can get this particular debt below £750?

Some of these people sending stat demands dont care and may push bankruptcy at you which could end up costing you a fortune and some if it goes ahead.

What advice did Payplan give you?

Very little for us to go on cassie, getting proper genuine free advice (second opinion) from another agency or agencies cannot do any harm - CCCS, CAB, National Debtline for instance but there are others.

You need to keep a close eye on this situation and act accordingly within any applicable time limits.

If possible could you put up more details of your overall circumstances as there may be people on here who can guide and help you further.

Also info below on how people make people bankrupt (I never really like putting this link up but it can help to know what the other side can do and how they do it)

http://www.direct.gov.uk/en/MoneyTax...ptcy/DG_187370


Best wishes

[charitynjw]

Re: Statutory Demand

Statutory demands are often sent as 'frighteners' - & very successfully so, as you can see!

However, they can be challenged & set aside on other grounds, regardless of whether you are liable for the debt.

It is concerning a 'regulated' agreement, so is there a correct default notice/termination notice?

Did you receive a Notice of Assignment?

Do Hamptons legally own the debt?

How long since your last payment/ acknowledgement of the debt?

[labman]

Re: Statutory Demand

Hi Cassie,

A Statutory Demand is a serious thing, even if used as a threat. There's a thread here about the increasing use of SD's as threats:

Debt Collection Agencies Statutory Demands, a few strategies - Legal Beagles Consumer Forum

Also have a read of this:

The procedure to get a statutory demand set aside.

After the period of 21 day from the statutory demand being served the person issuing the statutory demand may begin the process that petitions the person’s bankruptcy.
One method of avoiding bankruptcy is to get the statutory demand set aside.
To successfully get a statutory demand set aside one or more of the following must be satisfied:-

• The amount stated on the statutory demand is disputed.
• The person issuing the statutory demand also owes money. This is called a counterclaim.
• The person issuing the statutory demand is holding security that equals or exceeds the amount owing.
• The demand was issued in error.
• The amount owing is less than £750
• Execution has been stayed on a judgement debt.
• The debtor is complying with an instalment order. This would mean the debt is not actually owed as it is being paid back.
• The creditor failed to comply with the rules and prejudiced the debtor in the process.

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What are the time limits to get a statutory demand set aside?

An application to set aside must be made with 18 days of the statutory demand being served.

What forms must be used to get a statutory demand set aside?

Forms 6.4 (application) and 6.5 (affidavit) must be completed and taken to the court.

Can the court dismiss an application to set a statutory demand set aside?

Yes, if application if there are no reasonable ground to do so.

What forms are typically used in the statutory demand process?

1. Form no: 4.1
   Statutory Demand under section 123(1)(a) or 222(1)(a) of the Insolvency Act 1986
   Download Form 4.1.pdf*(Hold down Ctrl and left click)
2. Form no: 6.1
   Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately
   Download Form 6.1.pdf*
3. Form no: 6.2
   Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately Following a Judgment or Order of the Court
   Download Form 6.2.pdf*

Setting Aside Statutory Demand
If a debtor wishes to set aside a Statutory Demand then he has to make an application to the Court (there is no fee payable). The application must be supported by an Affidavit which sets out the reasons why the debt is disputed.
The grounds of setting aside the Statutory Demand have to be legitimate. If they are not, then the Court may dismiss the application without a hearing.
If the Court does allocate a hearing, both parties will be required to attend the Court and explain to a District Judge why the application should be set aside or otherwise.