Statutory Demand – Nice Xmas Present!

[skyrider]

I have today been served with a Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately

This relates to a guarantee I had given on the rent for a shop (now closed) leased in the name of a limited company I own. I have been trying to assign the lease for some time now, the Landlord’s solicitor has been slow in replying to all my requests to assign the lease consequently I lost a deal which would have cleared the debt nearly in full in March, another which would have cleared most of it and am on the verge of either completing or loosing another which will leave 2/3rds outstanding. The landlord (private individual) has obtained a judgement for £10k and about £2k costs and has a charging order on my house - we are hoping to exchange on early in the new year. The charging order is a way down the pecking order of COs and wipes out my share of equity in the house, although my OH will agree to using part of OHs equity to get the house sale through. The Landlords solicitor was very slow in providing our own solicitor with the figures for the CO which put us behind on exchange and perhaps too on completion including satisfaction of part of his clients debt!

I now have 18 days to respond to this demand, my first comments on it are:

• The address for response is the Royal Courts the Strand why has it not been issued in my local CC which is listed for bankruptcy matters and according the insolvency service web site is the right place?

• The figures do not marry with the judgement figure, nor with the amounts demanded when we have been discussing assignment. It looks like the figures are just a quickly thrown together tester as they total only 1/3rd of an alleged debt.

• Since much of the amount claimed is secured on property I think this application (on form 6.1) is incorrect anyway –

• • according to the forms notes “if the creditor holds any security the amount of the debt should be the sum the creditor is prepared to regard as unsecured for the purposes of this demand” the creditors text mentions security but does not explain what of the debt is secured and what is unsecured!

• • According to the Insolvency Service web site “A creditor who is owed more than £750 serves a 'statutory demand' for the money due and it is not paid or secured (for example, by a guarantee to provide something else of the same value); or a settlement is not agreed, within 21 days, and the debtor has not applied for the statutory demand to be set aside”. It seems to me that he already has security for this debt or at least an adjudged amount of it so the purpose of this particular application is negated!

• it was ‘served’ by dropping through the door after 9am this morning, according to the Insolvency Service web site “The completed form must usually be served on the individual in person. The creditor must have proof of service,”

• I assume that the demand’s delivery was strategic this morning to allow me no practical time to deal with it, eighteen days including today takes me to 8th January (unless someone knows how to get more time)

• • the solicitor selling my house has the figure the landlord has claimed against the charging order which would be satisfied on completion (hopefully mid to end Jan) they are closed until January 2nd

• • the solicitor trying to complete the assignment of the lease for the shop has the detail on this although I have a sort of statement of account not all of which I have guaranteed - they are closed until January 2nd

• • the landlord's solicitor is also claiming about £11k of costs, £2k has been approved by the court but he has refused to give me a breakdown of the remaining £9k!

• I have been to court to try to get the judgement set aside but lost (before I discovered my friends here), could I dispute the debt which is unsecured? This will allow the sale to go through to clear most of the debt, the assignment to go through to clear another 1/3rd the debt and then all we are missing is another 1/3rd which perhaps bears some discussion.

• the real problem is that the landlord has refused to speak to me rather than work this through as I have done with 2 other landlords which got the ‘best of a bad job’ for all concerned.

• I had been considering launching a claim or complaint against the landlord and his solicitor for my consequential losses by their inaction and am wondering whether now is a good time to start it?

[humbleman]

Originally Posted by skyrider

I have been trying to assign the lease for some time now, the Landlord’s solicitor has been slow in replying to all my requests to assign the lease consequently I lost a deal which would have cleared the debt nearly in full in March,

Commercial leases normally contain a clause that the landlord may not unreasonably withhold consent blah blah blah.... If they took more than 14 days to grant consent/assignment I would say that is unreasonable. But since they already have a CCJ don't know how you would use this arguement against them.

Just a thought