Shoosmiths SD

[tankusmaximus]

Hi guys

just looking for some impartial advice.

Myself and business partner ran a small ltd business for 5 years that ceased trading 2 years ago.

In that time we left a debt of 10k to RBS that was a combination of overdraft and visa card. Both of which were unsecured personal guarantees.

Shoosmiths have since chased us both down and served both of us with SD's.

My question is although we have offered monthly payments that Shoosmiths have declined, surely they wouldn't pursue with Bankruptcy for 10k and then secondly they cant make us both bankrupt for the same debt surely it has tol be either one of us??

Can someone shed some light on what to do next we were served yesterday (both have different addresses) so the clock is ticking

Thanks

[R0b]

Re: Shoosmiths SD

If they are calling in the debt, then they're calling it in. Did you offer a reasonable repayments?
Not sure whether this is one gurantee we are talking about in which you are both join guarantors or if this is 2 guarantees. The amount you will owe should be stipulated on the guarantee.

[tankusmaximus]

Re: Shoosmiths SD

I offered what I could afford Rob, we were joint Guarantors and the amount on each SD is identical,both SD's are identical just different Case handlers at Shoosmiths

[R0b]

Re: Shoosmiths SD

I see, unless the guarantee is invalid for one reason or another and they've complied with the rules then i'm afraid that there might not be anything you can do about it.
is this definitely a guarantee or does it take the form of a deed? do you have a copy you could upload or message me a link I could look at?

[tankusmaximus]

Re: Shoosmiths SD

Hi Rob, im no longer in possession of the guarantee when we set up the business bank account so would have to ask RBS to send the financials. So i cant help there maybe i should contact litigation specialist to try and set aside if possible

[R0b]

Re: Shoosmiths SD

I agree, guarantees is a specialist area and the first thing you should be doing is requesting a executed copy of the guarantee - no executed copy, then they cannot enforce anything. Usually guarantees take the form of deeds but it could very well be a guarantee by its own accord. Without any documentation its difficult to provide any further help

- - - Updated - - -

Try writing to shoosmiths first requesting it as they may have it on hand when they were instructed, if not request it from RBS.

[tankusmaximus]

Re: Shoosmiths SD

I Understand Rob, should I request this from Shoosmiths or RBS, if so how do i ask for this

[R0b]

Re: Shoosmiths SD

You could try Shoosmiths first as they have been instructed. Simply request a copy of the signed and executed copy of the guarantee in order to consider your position - if there is an email address of the file handler send a direct email - you are likely to get the document faster through Shoosmiths as opposed to the bank

[tankusmaximus]

Re: Shoosmiths SD

fantastic exactly what ive just done, many thanks Rob

[FlamingParrot]

Re: Shoosmiths SD

Shoosmiths have since chased us both down and served both of us with SD's.

I don't think it has been mentioned on this thread but you have to challenge the SD (apply to have it set aside) within 18 days, otherwise they can proceed with a bankruptcy petition. :scared:

Some creditors use SDs as debt collection tools, basically to scare people into paying when they have no intention of petitioning their bankruptcy, however, there is no way to tell whether they are serious about petitioning or not so it's best to be on the safe side. :thumb:

My question is although we have offered monthly payments that Shoosmiths have declined, surely they wouldn't pursue with Bankruptcy for 10k

They would... currently the limit is only £750 and when it increases it will be £5,000.

just looking for some impartial advice.

Myself and business partner ran a small ltd business for 5 years that ceased trading 2 years ago.

In that time we left a debt of 10k to RBS that was a combination of overdraft and visa card. Both of which were unsecured personal guarantees.

and then secondly they cant make us both bankrupt for the same debt surely it has tol be either one of us??

Can someone shed some light on what to do next we were served yesterday (both have different addresses) so the clock is ticking

Thanks

Did both of you guarantee both debts (overdraft and card) or was it one and one?

[Debt Camel]

Re: Shoosmiths SD

Finding the details of the guarantee is important so it's good you have got that underway.

However you can't wait to see the results of that to start planning what you intend to do if the guarantee does appear to be enforceable.

Do you have a lot of other debt? Do you have any assets, eg a house with equity? Have you talked to your ex partner about this?

[tankusmaximus]

Re: Shoosmiths SD

HI Debt Camel

Ive request proof from Shoosmiths, and have also emailed Howlett Clarke as to how to proceed.

Myself and my ex business partner are in regular discussions as he's in the same boat.

We want to resolve with Shoosmiths but they seem to be incredibly stubbon, its not that we dont want to pay its the fact that they or RBS have never accepted our monthly payments request hence the SD.

Ill await to hear what some decent legal advice from Howlett Clarke will gain us

Thanks everyone

[R0b]

Re: Shoosmiths SD

Agree with Debt Camel, you can't just sit and wait as there is a short time limit on these. You can apply to have the statutory demand set aside on the following conditions and no fee is payable for the application. Once the application is submitted (or court date set) the clock stops until it the hearing has been concluded (or my understanding is that it restarts the clock?):

• The debt is disputed on substantial grounds.
• The debtor appears to have a counterclaim which equals or exceeds the amount of the debt.
• The creditor holds security for the value of the debt.
• The court is satisfied on other grounds that the demand ought to be set aside.

Has the Statutory demand been served correctly and does it have the correct information:

• The purpose of the demand and that bankruptcy proceedings may be commenced if it is not complied with.
• The time within which it must be complied with if that consequence is to be avoided.
• The debtor's right to apply for the demand to be set aside, and the court to which any application should be made
• Complied with the formal requirements of the IR 1986.
• Correctly identify the creditor and the debtor.
• Provide details of the debt, any consideration for it and how it arose.
• Include details of any interest or other charges that are accruing.

[FlamingParrot]

Re: Shoosmiths SD

HI Debt Camel

Ive request proof from Shoosmiths, and have also emailed Howlett Clarke as to how to proceed.

Myself and my ex business partner are in regular discussions as he's in the same boat.

We want to resolve with Shoosmiths but they seem to be incredibly stubbon, its not that we dont want to pay its the fact that they or RBS have never accepted our monthly payments request hence the SD.

Ill await to hear what some decent legal advice from Howlett Clarke will gain us

Thanks everyone

That sounds very promising. :clap2: Glad to hear you decided to contact them, Howlett Clarke have been successful in setting aside dozens of statutory demands over the past couple of years or so. :yo:

[tankusmaximus]

Re: Shoosmiths SD

Just a quick update guys.

Howlett Clarke have been a great help in corresponding to my emails, and anyone joing this forum should definatly liase with them in the first instance

I've managed to negotiate with Shoosmiths on a monthly repayment plan however they have responded with the below .... is this right?

In terms of your repayment proposals, strictly on a without prejudice basis, my client has instructed us that:-

1. It will agree to accept £xxx per month with first payment to arrive within 14 days of the date of this email and thereafter by the 5^th day of each month;

2. After 3 months, when my client is satisfied that the payments are coming in on time without delay or default, it will instruct us to write to you to confirm that it withdraws the statutory demand dated 19 August 2015;

3.However, if at any time any one payment does not come in as agreed, my client will be at liberty to take action against you immediately, such action includes but is not limited to continuing with the statutory demand dated 19 August 2015 (if it has not been withdrawn by the time of default) or recommence action with a new statutory demand.

This was sent via email, the Guarantee attached that I have signed clearly doesn't stipulate who owns the debt, how the debt is enforceable nor give a time to pay as it was for an overdraft, nor is it accompanied with a new agreement regarding the monthly payments.

Under the circumstances do i just count my blessings and continue with monthly repayments

Best