Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

[Goldie]

Hi. I owe a large amount of money I can't pay. I attended a hearing and the judge ordered me to pay £1 per month, as I am unemployed . I am sticking to the Agreement. All of a sudden, I get a phone call from the the other side's solicitor saying they are now going to petition me for bankruptcy.
Why would they do this?
What is the advantage to them of doing this as they know I have no assets or money or income?
My total debts, including the CCJ, are £4,408. Will they be successful, do you think?
I am very worried and would appreciate your advice.
Thank you.

[Guest]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

Hi. I owe a large amount of money I can't pay. I attended a hearing and the judge ordered me to pay £1 per month, as I am unemployed . I am sticking to the Agreement. All of a sudden, I get a phone call from the the other side's solicitor saying they are now going to petition me for bankruptcy.
Why would they do this?
What is the advantage to them of doing this as they know I have no assets or money or income?
My total debts, including the CCJ, are £4,408. Will they be successful, do you think?
I am very worried and would appreciate your advice.
Thank you.

Are they under the impression that you have some assets you have not declared, seems like a pretty pointless exercise to me. It costs money to petition for bankruptcy, they would just be throwing good money after bad.

It sounds to me like they are trying to scare you into increasing your payments. There is the issue that the court has agreed this payment, so the bankruptcy action could be challenged on the grounds that the matter had already been judicially considered.

It isn't going to happen IMO

Looking at the other side, would it be so bad ? there es not the stigma involved with bankruptcy there used to be, and once it is done with your debts are wiped and you get to start again with a fresh slate. It may be the best thing that could happen to you. I really would not worry about it .
Some info generally here http://www.bis.gov.uk/insolvency/per...ptcy-affect-me

[teaboy2]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

A phone call?

Have they actually put anything in writing?

I find it usual for them to call you and make the threat - did they make any other demands like ask for increased payments?

Their likely to get nothing extra from you if they make you bankrupt. If, as you say, you have no assets to cover the debt, then after 12 months of being made bankrupt you will be released from bankruptcy restrictions and your debts to creditors.

[FlamingParrot]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

Hi. I owe a large amount of money I can't pay. I attended a hearing and the judge ordered me to pay £1 per month, as I am unemployed . I am sticking to the Agreement. All of a sudden, I get a phone call from the the other side's solicitor saying they are now going to petition me for bankruptcy.
Why would they do this?
What is the advantage to them of doing this as they know I have no assets or money or income?
My total debts, including the CCJ, are £4,408. Will they be successful, do you think?

Although bankruptcy is not always bad and can, in some cases, be the best solution, personally I don't think the amount above is large enough to justify that course of action. A phone call sounds like a threat to put pressure on you to pay more.

One option that *could* be worth looking into would be an administration order, since you appear to meet the requirements of:

• debts below £5k
• at least one CCJ
• at least two debts

One advantage of AOs is that you can include some debts not normally included in bankruptcy, such as court fines.

You may want to look at this for reference: https://www.nationaldebtline.org/EW/...s/Default.aspx

[FlamingParrot]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

With an Administration Order there's the possibility of a Composition Order where you only pay a fraction of what you owe if your circumstances mean you can't afford to pay enough every month to clear the debt. It could be a way out of paying £1/month on your CCJ forever and clear your other debts as well. :thumb:

See this for reference: https://www.nationaldebtline.org/EW/...s/Page-07.aspx

If you are only paying a very small amount to your creditors there is a danger that your administration order could go on for years.
A composition order is a way of trying to make sure that this does not happen. If the district judge makes a composition order, it means that you only have to pay part of your debts, usually an amount that you could manage to pay over a three-year period.

[Goldie]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

Are they under the impression that you have some assets you have not declared, seems like a pretty pointless exercise to me. It costs money to petition for bankruptcy, they would just be throwing good money after bad.

It sounds to me like they are trying to scare you into increasing your payments. There is the issue that the court has agreed this payment, so the bankruptcy action could be challenged on the grounds that the matter had already been judicially considered.

It isn't going to happen IMO

Looking at the other side, would it be so bad ? there es not the stigma involved with bankruptcy there used to be, and once it is done with your debts are wiped and you get to start again with a fresh slate. It may be the best thing that could happen to you. I really would not worry about it .
Some info generally here http://www.bis.gov.uk/insolvency/per...ptcy-affect-me

Thanks. I believe they are doing it because they are under instruction from the defendant to destroy my career, as I am an accountant and bankruptcy would do that, effectively. Would I have to pay his solicitor his costs in getting the petition and how much are they approximately?

[Goldie]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

A phone call?

Have they actually put anything in writing?

I find it usual for them to call you and make the threat - did they make any other demands like ask for increased payments?

Their likely to get nothing extra from you if they make you bankrupt. If, as you say, you have no assets to cover the debt, then after 12 months of being made bankrupt you will be released from bankruptcy restrictions and your debts to creditors.

They have not put anything in writing yet.

[Goldie]

Threatened with statutory demand which could ruin my career. Please help

Hi. I have been threatened by phone by a solicitor that he is going to apply for a statutory demand..At the moment I pay a CCJ of £1 per month, as ordered by the judge at a court hearing.
He was originally threatening bailiffs but decided against that course of action when I told him I have no assets / money..which is all true. I have debts of £4k, including the CCJ of £2k.
I think he's been instructed by his client to make me bankrupt on purpose, as this would almost definitely destroy my career as an accountant.

Do you think I could challenge the stat demand successfully?
And on what specific grounds?
Please help. I'm very worried.

PS The CCJ just said "it is ordered I pay defendant's costs of £2k....ie. it didn't tell me exactly who to pay or how to pay. Do you think I could apply for the CCJ to be set aside on that basis?

[Amethyst]

Re: Threatened with statutory demand which could ruin my career. Please help

Do you have a copy of the original judgment order you received?

[Amethyst]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

I've posted on your other thread - do you have the original judgment order from the court and if so could you type it out in full (exc. personal bits) or scan it in pls.

[Goldie]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

I've posted on your other thread - do you have the original judgment order from the court and if so could you type it out in full (exc. personal bits) or scan it in pls.

.
Thank you. I will do that in the next half hour.

[FlamingParrot]

Re: Paying a CCJ but now threatened with a Statutory Demand. Why? Help, please.

Thanks. I believe they are doing it because they are under instruction from the defendant to destroy my career, as I am an accountant and bankruptcy would do that, effectively. Would I have to pay his solicitor his costs in getting the petition and how much are they approximately?

You probably mean the CLAIMANT here since you would have been the defendant.

Creditors don't normally set out to destroy people's careers, that sounds more like the kind of behaviour you could expect from personal enemies such as exes, former business partners, disgruntled employees, etc. but not creditors.

Creditors are only after one thing: money. They may *threaten* bankruptcy as a way to push you to pay more, but it would serve no purpose for them to destroy your career, since that would leave you without the means to pay them back! In most cases, they would be after your assets, such as any equity in your home, rather than your career.

Do they even know you are an accountant? :noidea:

Are they actually asking you to increase payments?

[Goldie]

Re: Threatened with statutory demand which could ruin my career. Please help

The exact wording of the N24 is
"
1.The proceedings are struck out
2. The claimant do pay the Defendant's costs assessed at £2K
"
The defendant was harassing me and I took him to court, representing myself, but I had two ischemic attacks (mini strokes) in the meantime.
I then decided my health was more important than the harassment claim. I wrote a letter to all parties saying I was stopping the civil case. Unfortunately, what I did was not protocol - I should have informed the parties by an official form...hence the £2k costs.
I thought I knew how CCJs work.... (N1, N9's, hence giving you the opportunity to defend or pay), otherwise your credit rating is ruined / career ruined -(as is mine from the CCJ....as i am an accountant)
If I had known it was a CCJ, being honest, friends/ family would have paid the costs on my behalf.
Should I apply for a Tomlin Order, do you think?...I know only the very basics of the law..
Thank you for your help.

[FlamingParrot]

Re: Threatened with statutory demand which could ruin my career. Please help

The exact wording of the N24 is
"
1.The proceedings are struck out
2. The claimant do pay the Defendant's costs assessed at £2K
"
The defendant was harassing me and I took him to court, representing myself, but I had two ischemic attacks (mini strokes) in the meantime.
I then decided my health was more important than the harassment claim. I wrote a letter to all parties saying I was stopping the civil case. Unfortunately, what I did was not protocol - I should have informed the parties by an official form...hence the £2k costs.
I thought I knew how CCJs work.... (N1, N9's, hence giving you the opportunity to defend or pay), otherwise your credit rating is ruined / career ruined -(as is mine from the CCJ....as i am an accountant)
If I had known it was a CCJ, being honest, friends/ family would have paid the costs on my behalf.
Should I apply for a Tomlin Order, do you think?...I know only the very basics of the law..
Thank you for your help.

Sadly it's a bit late for that now, a Tomlin Order would be used to avoid a CCJ, as it has the effect of staying the proceedings on terms agreed by both parties.

Once a CCJ is obtained, if not paid within 28 days, it would stay on record for 6 years. If it was paid in full after 28 days, it would be recorded as satisfied but would still show, however, in some cases, it may help you if the CCJ shows as being satisfied, but this would be through paying it in full. See here for reference: http://www.trustonline.org.uk/unders...satisfied-ccjs

[Guest]

Re: Threatened with statutory demand which could ruin my career. Please help

In your initial post you say the court agreed a £1 payment, is there no record of this, and was this a result of a means statement ?