Received a Statutory demand today today under section 268(1)(a). old IG Index spread-betting Debt

[Shree420]

Hello everyone,

 

I am new here and thank you in advance for any help to get me through this nightmare.

 

I built up a debt with IG Index back in 2008. This was built up through a spread betting account I held with them.

 

I did pay a few payments of £50 or so back in 2009 as that is all I could afford.

 

After that I heard nothing from them.

 

On 12/06/2013 I received a letter from their solicitors saying that the balance of £10,712.89 is due immediately. They wanted payment within 7 days or they threatened immediate proceedings against myself.

 

I wrote to them in reply and said I never had a credit account with IG Index so how could I owe them any money.

 

I heard nothing back on that.

 

Today the doorbell rang and I was served with a Statutory demand under section 268(1)(a). It looks like a bankruptcy petition.

 

I am very frightened by this as I am a homeowner and also have 3 children and a wife living here.

 

Also this order is for £10,712.89 + Interest £2,918.29. On the 12/06/2013 there was no interest and it was just mentioned as £10,712.89 and now they suddenly mention interest on this also.

 

a) Can they serve me this notice just like this without asking me for income/liabilities or offer me a payment plan of some sort?

b) Can I offer them that now?

c) Should I just ask them for all the information I can (all my trade history etc.) under my rights of a "Subject access request"

d) Have I got grounds to get this set aside?

e) Can I really lose my house?

f) What can I do. What should I do.

 

Sorry for bombarding questions but I am so, so worried.

 

I suffer from Crohn's disease which can trigger at anytime with stress and once it triggers its a severe downward spiral. This si why I cannot afford to pay them back any sort of realistic lump sum.

 

I am more than happy to offer them what I can afford, but I cannot see that option here with this service of this notice.

 

Please can anyone help / advise?

 

Many thanks in advance.

Edited August 5, 2013 by Shree420

[unclebulgaria67]

For a set aside you would have to come up with very good reasons as to why you did not owe this amount of debt. This may take more than the 18 days allowed for the set aside.

 

In 21 days time, they could petition for your bankruptcy and yes in theory this could involve your house.

 

What I would suggest that you do is look at what money you have spare, make a reasonable payment and advise what regular monthly payments you can afford thereafter towards paying the debt off. Send by recorded delivery delivery. In the letter you could say that you are unsure about the amount they have quoted in their letter and ask for a full breakdown of the amount, including all trade history.

 

If you make a payment, with an offer of further payments, it makes it much more difficult for them to take forward for bankruptcy.

[Shree420]

Thank you so much for your super fast reply.

 

I still do not understand this bankruptcy petition.

 

If they have not asked for income / liabilities or have not attempted to get me to make some monthly payments, would a judge really just bankrupt me and force the sale of my home?

 

If I do not ask for it to be set it aside (because I have no grounds) then there will be a hearing where they will ask the Judge to make me bankrupt?

 

Say I ask for an SAR and realistically it will take 25 days, then can I not ask to have it set aside on the basis that I need time to receive the SAR information back and see my case?

 

Sorry for the questions but really would appreciate help on this.

 

Many thanks in advance.

[unclebulgaria67]

What happens is that the statutory demand is issued by the claimant or their solicitor. A copy of the stat demand does not touch a court, until the claimants proceed with the bankruptcy and issue the bankruptcy petition. The court then arranges a hearing about the bankruptcy petition. If you failed to stop the bankruptcy, you would then be dealing with an official receiver appointed by the court to look at your financial position. If it was necessary to force the sale of your house to gain the money for the claimant they would do that. The costs of the dealing with all this would be fairly sizeable and would eat into the equity of the house that was left.

 

Sorry to be blunt, but you are going to have to deal with this now by making a payment and an offer of further payments. You can still look into the details of the debt and dispute the amount, submitting an SAR for details. Making the payment is giving you breathing space, allowing you to deal with this, reducing the risk of bankruptcy, which could mean your family losing their home.

 

If you don't believe me, then phone National Debtline or Stepchange(debt charity) who deal with these type of issues on a daily basis. They will confirm how this works and what you need to do.

[Shree420]

Fully understood and I believe you. Thank you so much.

 

I will deal with it tomorrow itself.

 

I will update this as to how I get along.

 

Thanks again.

[The Mould]

You still need to respond to the SD.

 

Ask Site Team 42man for help on this.

 

Kind regards

 

The Mould

[Shree420]

You still need to respond to the SD.

 

Ask Site Team 42man for help on this.

 

Kind regards

 

The Mould

 

Thank you so much Mould for your kind help also.

 

How do I ask 42Man?

[honeybee13]

Thank you so much Mould for your kind help also.

 

How do I ask 42Man?

 

Hello there. You can PM him, but I'll flag this thread for the team and let him know you're looking for help.

 

My best, HB

[citizenB]

I will send an S.O.S. to 42man on your behalf. His time is limited but he will look in on you

[unclebulgaria67]

Can I suggest that you read this linked page from National Debtline.

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=36_dealing_with_a_statutory_demand

 

Have a think about what reasons you would have to set aside the statutory demand. Remember that you may have to attend a court hearing to discuss such an application, where the claimants Solicitors may argue against.

 

Perhaps give National Debtline a call to discuss this as well. If you decide that you want to try to set aside the statutory demand, then post back.

[citizenB]

S.O.S sent to 42man.

 

Meanwhile, I agree with Uncle B. National Debtline are very helpful and will be able to offer advice in confidence.

[dx100uk]

can I suggest you get that SAR off today to the original creditor by recorded delivery

 

dx

[Shree420]

I am really humbled by all your kind offer to help and advise so far.

 

I shall call National Debtline shortly and discuss with them after reading the link posted above.

 

I will deal with the SAR also as advised.

 

Thank you so much for SOS'ing 42 Man. Look forward to his say on this also and then deal with the above.

 

Thanks 42 Man in advance for giving your precious time.

[sequenci]

Hello there, is there equity in the property?!

[Shree420]

Hello there, is there equity in the property?!

 

Yes there is enough equity to more than cover the debt.

 

That is why I cannot understand a bankruptcy petition as I am not bankrupt, just cannot pay the debt at this moment in time but can pay in small monthly installments.

[unclebulgaria67]

Yes there is enough equity to more than cover the debt.

 

That is why I cannot understand a bankruptcy petition as I am not bankrupt, just cannot pay the debt at this moment in time but can pay in small monthly installments.

 

You are currently insolvent to meet the financial demands being made of you, which is actually bankrupt. If you have read in the newspapers of famous people who have been made bankrupt, you would be scatching your head, thinking they owned a £5m house and were on TV every week in a soap opera. Because creditors demands for money were not being met, even though they had assets which could be sold, they are technically insolvent. I don't think you have to be pennyless with no assets to be bankrupted.

 

Anyway, phone National Debtline if you haven't done so yet and I am sure they will tell you to make a payment, plus offer of further payments, to avoid an unnecessary bankruptcy.

[sequenci]

That is why I cannot understand a bankruptcy petition as I am not bankrupt, just cannot pay the debt at this moment in time but can pay in small monthly installments.

 

They have a right to consider legal action if you've breached the terms of your contract. Bankruptcy should really be a last resort though. If you don't have a challenge to the legitimacy of the debt you could see if they would accept a voluntary charge against the property instead - you could also apply conditions so that there would be no possibility that they would be able to force the sale of the property. If this goes to a bankruptcy hearing the judge *may* allow for a charge to be granted rather than allowing the bankruptcy.

 

You need to avoid bankruptcy really as the house would certainly be sold unless you can satisfy the debt - it's also likely that the Official Reciever may consider a Bankruptcy Restriction Undertaking due to the type of debt we are delaing with.

 

It's important to note that a statutory demand is simply a precursor to bankruptcy - although you should always assume that they will press on with the creditor's petition - especially if we're talking about a 5 figure sum.

[Shree420]

You are currently insolvent to meet the financial demands being made of you, which is actually bankrupt. If you have read in the newspapers of famous people who have been made bankrupt, you would be scatching your head, thinking they owned a £5m house and were on TV every week in a soap opera. Because creditors demands for money were not being met, even though they had assets which could be sold, they are technically insolvent. I don't think you have to be pennyless with no assets to be bankrupted.

 

Anyway, phone National Debtline if you haven't done so yet and I am sure they will tell you to make a payment, plus offer of further payments, to avoid an unnecessary bankruptcy.

 

Thank you so much. I did call them yesterday and am waiting for a call back from the specialist after speaking to the initial person. I will try them again when they reopen in 5 minutes time

[Shree420]

They have a right to consider legal action if you've breached the terms of your contract. Bankruptcy should really be a last resort though. If you don't have a challenge to the legitimacy of the debt you could see if they would accept a voluntary charge against the property instead - you could also apply conditions so that there would be no possibility that they would be able to force the sale of the property. If this goes to a bankruptcy hearing the judge *may* allow for a charge to be granted rather than allowing the bankruptcy.

 

You need to avoid bankruptcy really as the house would certainly be sold unless you can satisfy the debt - it's also likely that the Official Reciever may consider a Bankruptcy Restriction Undertaking due to the type of debt we are delaing with.

 

It's important to note that a statutory demand is simply a precursor to bankruptcy - although you should always assume that they will press on with the creditor's petition - especially if we're talking about a 5 figure sum.

 

Many thanks again. Makes perfect sense.

 

I would love to see if a reason can be found to set it aside but on the face on it, it seems I do not fit into any of the criteria other than the letter received 3 weeks ago mentions £10,712.89 but the stat demand is for £10,712.89 + interest £2,918.29 = £13000+.

 

There was no mention of this interest before.

 

Thats one of my questions for National Debtline

[Shree420]

Hello all,

 

Thank you for your help so far.

 

This is where I am up to.

 

I spoke with Stepchange and National debtline,

 

Both went through my assets, liabilities and also income and expenditure.

 

They proposed that I make an immediate offer of a monthly payment to them and explain my current circumstances.

 

I did that last week and have received no reply.

 

I have today written to them again asking why no reply and offering the sum again and also taking the liberty of paying them the first installment.

 

I also queried the debt with them as they suddenly added interest to it. Debt was always noted as £10,712.89. The letter I got initially a month back or so was for £10,712.89.

 

However the stat demand added backdated interest of £2,918.29.

 

I have sent them a CCA request to find out how they added that.

 

So can I now set it aside basis:-

 

I am disputing the debt they are asking (ie. where the interest has come from)

I have asked them for a CCA and no reply yet.

I have made an offer to pay the debt off but no reply yet.

 

Please can anyone help?

[unclebulgaria67]

Hello all,

 

Thank you for your help so far.

 

This is where I am up to.

 

I spoke with Stepchange and National debtline,

 

Both went through my assets, liabilities and also income and expenditure.

 

They proposed that I make an immediate offer of a monthly payment to them and explain my current circumstances.

 

I did that last week and have received no reply.

 

I have today wrote to them again asking why no reply and offering the sum again and also taking the liberty of paying them the first installment.

 

I also queried the debt with them as they suddenly added interest to it. Debt was always noted as £10,712.89. The letter I got initially a month back or so was for £10,712.89.

 

However the stat demand added backdated interest of £2,918.29.

 

I have sent them a CCA request to find out how they added that.

 

So can I now set it aside basis:-

 

I am disputing the debt they are asking (ie. where the interest has come from)

I have asked them for a CCA and no reply yet.

I have made an offer to pay the debt off but no reply yet.

 

Please can anyone help?

 

Yes you should apply for the set aside on the basis you have made a payment and are in the process of negotiating a repayment plan, plus the other issues you raised.

[The Mould]

Hello all,

 

Thank you for your help so far.

 

This is where I am up to.

 

I spoke with Stepchange and National debtline,

 

Both went through my assets, liabilities and also income and expenditure.

 

They proposed that I make an immediate offer of a monthly payment to them and explain my current circumstances.

 

I did that last week and have received no reply.

 

I have today wrote to them again asking why no reply and offering the sum again and also taking the liberty of paying them the first installment.

 

I also queried the debt with them as they suddenly added interest to it. Debt was always noted as £10,712.89. The letter I got initially a month back or so was for £10,712.89.

 

However the stat demand added backdated interest of £2,918.29.

 

I have sent them a CCA request to find out how they added that.

 

So can I now set it aside basis:-

 

I am disputing the debt they are asking (ie. where the interest has come from)

I have asked them for a CCA and no reply yet.

I have made an offer to pay the debt off but no reply yet.

 

Please can anyone help?

Did you receive a valid statutory default notice pursuant tos.87(1) of the CCA 1974 (as amended) (“the Act”) , from your creditor? If no such valid notice has been served onyou prior to these SD proceedings, then the creditor cannot proceed with thisaction against you as he is not entitled by virtue of his failure (potentialfailure at present, until you confirmthis particular area of this matter) to comply with the statutory provisions ofsaid s.87(1) of the Act. This isestablished law and sufficient grounds on its own to set aside SD. Research s.87(1) of the Act.

Any ppi on this account? Again, this is a valid argument for set aside. Amount claimed is indispute!

Failure to comply with your CCA request = creditor cannottake any enforcement action.

You must file your Response/Defence against this SD toyour local County Court, regardless of any correspondence that you aresending/receiving from the creditor on this matter, unless of course he acceptsyour offer to repay and withdraws his SD.

Have a good read of other SD threads in this legal issuesforum as these will help you to set aside your SD. Also, send an SOS to 42man Site Team forfurther help on this matter, as you are against the clock since date SD wasserved on you.

Kind regards

The Mould

[The Mould]

http://www.consumeractiongroup.co.uk/forum/showthread.php?380607-lowells-statutory-demand-i-am-panicking-**-SET-ASIDE-**

 

Have a proper read of the above SD case, simply click on the link.

 

Kind regards

 

The Mould

[Shree420]

Did you receive a valid statutory default notice pursuant tos.87(1) of the CCA 1974 (as amended) (“the Act”) , from your creditor? If no such valid notice has been served onyou prior to these SD proceedings, then the creditor cannot proceed with thisaction against you as he is not entitled by virtue of his failure (potentialfailure at present, until you confirmthis particular area of this matter) to comply with the statutory provisions ofsaid s.87(1) of the Act. This isestablished law and sufficient grounds on its own to set aside SD. Research s.87(1) of the Act.

Any ppi on this account? Again, this is a valid argument for set aside. Amount claimed is indispute!

Failure to comply with your CCA request = creditor cannottake any enforcement action.

You must file your Response/Defence against this SD toyour local County Court, regardless of any correspondence that you aresending/receiving from the creditor on this matter, unless of course he acceptsyour offer to repay and withdraws his SD.

Have a good read of other SD threads in this legal issuesforum as these will help you to set aside your SD. Also, send an SOS to 42man Site Team forfurther help on this matter, as you are against the clock since date SD wasserved on you.

Kind regards

The Mould

 

 

Thank you UncleB will do.

 

Thank you so much Mould for this detailed reply.

 

This debt was with a spreadbetting company in 2008.

 

The original debt (£10,712) remained the same all the time.

 

The letter requesting £10,712 received in June 2012 was the first correspondence since 2009.

 

The reason I have requested a CCA is that in the Stat demand they have added this line in ...

 

Interest has accrued on the sum of £10,712.89 at the rate of 4% above base rate in accordance with Term 15 of the Creditor's Customer Agreement entered into between the creditor and the debtor from 16 March 2008 to the date thereof in the sum of £2,938.29)

 

I do not know anything about this agreement and it has just been sprung on me in the Stat demand.

 

Are all your points on this still valid basis the facts above?

[The Mould]

By the way, what amount did you offer to repay monthly?

 

As the creditor has not replied to your offer, I would strongly advise you to re-send your offer by Special Delivery Royal Mail by 1 pm, BUT, make your offer to repay monthly and state in your letter that this offer is made without any admission of liability to the amount claimed and supersedes all and any offers made by you in respect of this account. (very important that you amend your letter to state this) and is subject to them producing a valid CCA pursuant to your CCA Request dated (put date).

Kind regards

 

The Mould