Statutory Bankruptcy Threatened by a Creditor - options?

[mikeyzer0]

Hi, I have just found out about these forums through a friend.

I have a large level of loan and credit card debt accumulated over several years, and have been trying to go through the voluntary bankruptcy procedures on the government's insolvency website, but this has been ongoing for some years, as I haven't been able to face this and deal with it. However, with the influence of my CAG friend, I'm now in a position to start addressing this properly, including opening post I have been ignoring for years. In going through this recent post, one of my creditors has sent me a statutory demand for bankruptcy, which I have not yet completed.

I am looking to challenge the legitimacy of the bankruptcy (through Egg) with the help of these forums, based on the fact that unlawful bank charges have comprised at least some element of the debt being pursued. If I approach the companies regarding unlawful charges, is this the first step in forestalling this bankruptcy? Send SAR to each company alongside a letter telling them I am seeking to pursue unfair charges? I will naturally seek a copy of the original credit agreement at the same time, to ensure that this debt is in fact enforceable.

Many thanks,

Mike

[palomino]

At this point you have to seriously decide whether you want to be declared bankrupt.

From your comments that would seem to be a good option as all your unsecured debts would be included in the bankruptcy. If you do decide on this route then let one of your crditors do the donkey-work - and pay all the fees.

 

If you don't want to consider the bankruptcy route then you should have had the Statutory Demand set aside. You say you found this in some recent mail - how recent? Technically I suppose you could say you have only received it when you opened it.

If the SD was delivered by ordinary post then it was not properly served - unless of course you acknowledge receiving it.

You have 18 days to have this set aside, otherwise it stands.

[loobyloo85]

Yes Mikeyzer, I agree with Palomino.

If you would like to go bankrupt, then you dont have to act on the stat demand, and the creditors will automatically make you bankrupt, without you having to pay the fees.

If, however you do not wish to go bankrupt, you need to check the date of when the stat demand was sent, as if it was under 18 days ago, you can still apply to have this set aside, however if more than 18 days ago, it will be too late to set aside, and you will need to write to the company trying to get this suspended. They would then usualyl hold a bankruptcy petition hearing for you to attend where they would decide if the demand should be granted x

[Dodgy Geezer]

Hi Mike.

 

Well done on facing the problem, i know how tough it can be.

Could you post a little more detail if thats OK.

 

Amount of loan? Secured/Unsecured?

 

Hold old is the loan/debts? Last payments made?

 

How much of the loan is made up of charges?

 

Sorry to be so intrusive, but its important that you do things in the right order, and not make things worse.

 

There was a post on here recently that a Stat Dem was 31 months old and not yet reached Bankruptcy. So all is not lost.

[mikeyzer0]

Palomino, LoobyLoo, Dodgy,

 

Thanks so much for the help and advice. Sorry for the delayed reply, but I've not got much internet access these days!

 

Bankruptcy is something I would do quite happily - I have been trying to do this for years but been unable to complete the forms (now well under way now I'm opening my post and dealing with these issues) or raise the money to do so. So in that way, if this creditor (Capquest) will actually pursue the Statutory Demand, it might be the quickest and easiest way for me to resolve all my issues as you all say. However, for the want of sticking up for myself against the 'evil corporations', there is a part of me (and my friend) that says 'stuff 'em, get some money back'. The nub of my question, I suppose, is can I do both? Be made bankrupt, and also claim some 'unfair charges' back?

 

The first StatDem I found was dated November '08. Not having opened this letter, I'm inclined to agree with you Palomino, that it only just applies. It was delivered by regular post, not recorded delivery or anything like that. However, a much more recent letter from Capquest last week indicates their displeasure at not having received a satisfactory response from me (I have not acknowledged it at all) and alluding to the fact that they have now appointed ScotCall to serve me with a fresh SDB, at the same time completing a witness statement to the effect that it has been delivered, as may be required by the Court (their words). So therefore I believe the SDB may be imminent if they are really interested in pursuing this. Until this happens, and I understand the set aside thing, I guess my options are open, so I'm starting to send out SAR letters to all creditors, including Capquest. Just my luck if I can pursuade them that the debt is unenforceable and they go away - back to square one, albeit with slightly less debt.

 

Regarding the debts themselves, these add up to about £40Km all unsecured, to about 13 major creditors over 5 years or so (stemming from the unforeseen sale of a house I was a part-owner of, and which proceeds did not cover the borrowing I had on it, though the mortage was repaid in full), and some smaller ones, including CCJ's from Northampton CC. My credit is messed up anyway, so bankruptcy doesn't really hold any major threat. Last payments made would have been a couple of years ago to many of them, though some much more recently, say a couple of months ago. CCCS has advised me to send token payments to creditors, of say a pound (I'm currently unemployed), to keep goodwill.

 

Dodgy Geezer, I'm very interested by your comment;

"its important that you do things in the right order, and not make things worse"

Is there something I'm overlooking here? Could you perhaps follow up with me?

 

Many thanks again for the superb info and insight.

 

Mike

[rapterman]

The paper work for filing for bankruptcy is not that hard to complete and there are plenty of people on here that will talk you through the whole thing page by page if that is what you decide to do.

I just filed yesterday and I now have a date to go back to see the Judge in a few weeks, the whole thing was quite painless so far, and most people on here will say the same.

The hardest part that I found was simply getting the money together for it!

(Its ironic that you need to have money in order to prove you don’t have any!)

[Dodgy Geezer]

Hi Mike.

 

What i meant was, if as you said, you have not opened your post for years, then you probably hadn't made any payment either.

I just wanted you to gather as much information as possible before sending off any letters acknowledging any debts.

Chances were they may be close to statute barred, and Bankruptcy might not be necessary. But reading your last post i see that isnt so.

 

Sod the token payments if you decide to go BR. Goodwill goes out the window.

 

Well done again on facing the difficulties. Dont rush into anything until you are sure of what you want.

[babybear39]

Capquest aren't known for following through on an SD as you can tell by the date of the earlier one you have from them.

 

Contact nationaldebltne or CCCS for great advice free of charge on BR.

 

Good luck and best wishes