Connaught collections.......threats of Bankruptcy

[sequenci]

However it sounds like an empty threat with these guys

 

I've had clients made bankrupt by these people. Always assume they mean it when you receive these threats. There are things to consider, however.

 

a) are there any assets? if you live in rented accomodation it would be unlikely that bankruptcy would be the best option for the creditor as there is a distinct likelyhood they won't get any/much money.

 

b) what is the level of the debt? proceedings for bankruptcy can be very expensive, is it worth it?

[sequenci]

I agree with you there which is why i advice having stat demands set aside if thats possible in your case.

 

remember, you can only have a stat demand set aside if there are grounds to do so. a CCA request should be a priority in these instances although i appreciate the 18 day time limit is tight.

[sequenci]

Not sure what to look for regarding stat demand served correctly!

 

how did you receive it?

 

if you're in rented you can relax a little.

 

if they were to issue a creditor's peition it would cost them the best part of a thousand pounds, they would be highly unlikely to get a return on that due to your circumstances. my guessing is that this action is purely a scare tactic and that personally i feel their actions are disproportionate to the debt level. complain to the OFT about their tactics.

[sequenci]

How do i do a creditors petition?

 

they would first issue a statutory demand, then, after 21 days they can then serve a creditor's petition against you with a view to making you bankrupt.

 

you can read all about it here:

 

Guide for Creditors

[sequenci]

Not sure what to look for regarding stat demand served correctly!

 

how did it arrive?

 

posted? served via hand?

[sequenci]

It came through the post, but we've has flooding and postal strikes so the thing didn't arrive until a few days ago. Th edate on the letter was 13th july!

 

first or second class?

 

if you dispute the debt in anyway, you could apply to have it set aside, it might be considered even at this late stage due to the mitigating circumstances with the post etc. you need to fill in forms 6.4 and 6.5, you can grab these from your local county court or The Insolvency Service Website

 

remember the court will need to agree there is a reasonable dispute for the set aside to be granted.

[sequenci]

To be honest i don't have reasonable grounds. Was s/employed that went pear shaped and run up some debts.

 

What should i do?

 

CCA them with a view to possibly challenging the creditor's petition which they are very unlikely to serve in the first instance, afterall you're in rented accomodation. i would imagine they will not wasrte their money with the peition due to the cost.

[sequenci]

What is a creditors petition? Is that where they ask for a list of all my outstanding debts?

 

no. a creditor's petition is where your creditor would apply to the court to make you bankrupt.

[sequenci]

I have sent a CCA request but in the mean time could they just go ahead and start the process then? Do you think they will over £1600?

Should i just pay it or hang fire? I don't really have the money but cuold raise it with favours from family.

 

you are in rented, i'm 99.9% certain they WILL NOT issue a bankruptcy petition against you.

[sequenci]

But i don't think they know i am in rented.

 

a quick search of the land registry would soon tell them you have no property my good man.