Court tomorrow - solicitor's letter today

[sali11]

Hi people

 

I have a statutory notice set aside hearing tomorrow. This morning I have had a letter from the debt company appointed solicitors listing an invoice of costs that I will be liable for if I lose. It is well over £1000. I am now starting to get nervous, the debt was around £500 and I haven't admitted to it. It was for a charity which I left in 2005 and which was wound up in 2007. They didn't clear the debt and a telephone system that I had signed on behalf of the organisation in 2003 had some payment left on it which they never paid. I am disputing the debt as it is the organisation's debt and not mine. I am starting to get very nervous not knowing what to expect tomorrow. Any help or advice welcome. Thanks in advance.

 

Regards

 

Sali

[sillygirl1]

They are trying to panic you into not turning up, you have a right to turn up and defend yourself, and claim equal costs from them (including 10 hours research time at £9.25 per hour). DO NOT PANIC.....

 

If the debt is in the name of the organisation which was wound up and you were not a director they should not be chasing you for the money in the first place. Make sure you have all the details of the organisation and its directors with you and throw that at them when the opportunity strikes (not physically coz you might get ejected from the court, but state clearly) Please sir (or madam) I wasn't a director of the firm and this debt was part of their winding up order... if it goes back to 2003 as you state you also have grounds for it to be statute barred.

 

What is the company who have started the set aside? Not 1st Credit by any chance?

[heliosfa]

Hi people

 

I have a statutory notice set aside hearing tomorrow. This morning I have had a letter from the debt company appointed solicitors listing an invoice of costs that I will be liable for if I lose. It is well over £1000. I am now starting to get nervous, the debt was around £500 and I haven't admitted to it. It was for a charity which I left in 2005 and which was wound up in 2007. They didn't clear the debt and a telephone system that I had signed on behalf of the organisation in 2003 had some payment left on it which they never paid. I am disputing the debt as it is the organisation's debt and not mine. I am starting to get very nervous not knowing what to expect tomorrow. Any help or advice welcome. Thanks in advance.

 

Regards

 

Sali

 

Hi There, it sounds like usual scare tactics to me - make you doubt that you have a case and threaten you with unrealistically large costs figures.

 

If you get the SD set asside, I take it that YOU will be claiming costs?

 

You say the debt was £500, what do they claim it is now?

 

 

Just to make sure, you didn't Personally guarantee payment for the work? What position did you hold with the charity?

 

Thanks,

H

[Guest wino]

I too was being chased by BT for a phone bill for the company I worked for as I had arranged over the phone to have phones installed at my then boss' request.

 

When the company closed they chased me personally for the outstanding balance and for the next 5 years line rental.

[sali11]

I was a treasurer of the organisation until 2005. The charity wound up in 2007. There were two signatories on the contract myself and the then manager in 2003. The debt remaining in 2007 was about £400, they are now seeking £1200 after getting in contact in March 2009. The company is Go Debt Ltd.

 

The solicitor has put in his invoice costs at £125 per hour. How can I claim costs back. What should I expect tomorrow, a court room or an office with a few people in it?

 

Thanks

 

Sali

[sillygirl1]

As there were two signatories they shouldn't have a leg to stand on, point this out in court, it will possibly be yourself and a judge and their side (if they show up) in a room. Between 2003 and 2009 seems very unreasonable for them to start chasing you... point this out too if you get asked.

 

You should ask when the set aside is granted that you have your costs paid by them, wasted time, phone calls, research and of course lost wages in coming to court, plus petrol parking and fares.

 

If the company was wound up in 2007 you need proof of this to hand to the judge, you should no way (in my unqualified opinion) be held responsible for this alleged debt. Go Debt Ltd are a bunch of chancers and are chasing a nigh on statute barred debt, in this case as it is a 'commercial' debt relating to a company it is 3 years... they basically are in the poo, not you.

 

What defence have you filed (if any)....

[Ruprecht]

These companies even go after charities! Yikes!

 

It is nearly always (99% of the time) around just a small table in an office room.

 

Have you got a copy of the contract you signed?

 

If not make it clear to the judge that you signed on behalf of the charity and not in a personal capacity. Say the word "charity" as many times as you can get away with!

 

People can only ever be made bankrupt if more than £750 is owed too. Make sure you say the charity only owed the £400 and everything else is added on charges.

 

Dispute everything, hold them to strict proof.

 

Don't worry yourself too much about it, I would hope the judge awarded you costs too!

[chauvesouris]

This is just a set-aside hearing for the Statutory Demand isn't it? In which case, all you are trying to show is that they shouldn't have issued it - i.e. that it is about a sum of money which was (and still is) in dispute.

 

The debt collectors are abusing the court process by going for a Statutory Demand when they should have started a case in the county court against you (in order to establish your liability). This is similar to the case of Re A Company (No 0012209 of 1991) [1992] 2 All ER 797 - which featured exactly the same sort of abuse of process; enough to satisfy Rules 6.5(4) b and d of the Insolvency Rules 1986 (for a set aside) and so they will be liable for costs on an indemnity basis.

 

From an evidential point of view, it will be very useful if you can produce something which proves that the DCA had notice that you were disputing the debt when they issued the SD.

 

I seem to remember you had a thread about this before. I still hold to my previous view that you might be liable - but that it depends on the type of organisation - if the liability of the organisation was not limited in some way then you may well be liable as a member (in much the same way as a member of a partnership is jointly and severally liable for its debts). But if they want to show you are liable then they should make their case in court (i.e. by suing you for the money, rather than going for bankruptcy).

 

Good luck.