Statutory demand/Bankruptcy action?

[stezza170]

I hav been issued a statutory demand by normal post, not recorded or deliviered in person, this was on the 05/07/07. The demand for bankruptcy is for a unsecured debt of �10k. My total debts to all creditors of �35k+. I jointly own a property with by a person not finacially linked with the debt and it has around �20k equity in it.

Does the lender pursuing the claim hav to serve the notice in person or by recorded post?

Can Bankruptcy be enforced by 1 lender?

Can 1 lender force the sale of the house even tho its in joint names?

Are they likely to pursue this knowin they will make a loss as all lenders wud hav to be paid from procedes?

Wen bankruptcy petiton is presented will my assets be frozen immediately and how long will the process take?

Early settlement of mortgage wud cause a redemption fee of around �10k wud that be stopped to release more funds for lenders?

I recieved a letter today dated 30/07/07 stating that as I have failed to respond to the statutory demand the collection agent is now in a position to present a bankruptcy petition. Are the collection agency still trying to bargain as I have not contacted them after the initial threat? Or is this normal for them to inform as such? Shud they not be carrying out the threat instead of still warning me?

[themas]

http://www.netlawman.co.uk/info/statutory-dema nd.php

Look at the above. It's written from the point of view of the creditor but contains info. (somewhat complex) about the procedure. It appears the demand must either be served personally or in such a way that it can be demonstrated to Court that you have received it. If you contacted them & acknowledged receipt that would probably do. There are other requirements - check what it says against the document you were sent.

A lot of debt collection agencies use issue of a Stat. Demand as a threat, but you cannot assume that is the case.

To answer your other questions:

1. Any one creditor can make you bankrupt.

2. Once you are bankrupt it is the Offical Receiver or Trustee who deals with things, & this can include selling the house even if it is jointly owned. However, they would give your co-owner the opportunity to buy out your interest.

3. Who can say if they will pursue it? If they do know they will make a loss (they may not) it is illogical but these decisions are not always rational ones.

4. Yes - assets are frozen immediately. Look at Insolvency Service website - very useful booklets you can download.

5. The early redemption penalty reduces the equity & should be taken into account in calculating the amount of your equity.

6. Sounds as if they may be trying to bargain but the main thing is you must not ignore this as they could go ahead with the bankruptcy.

[stezza170]

Thanks for the time youve taken. Your answer is pretty much wot I've managed to find out on a few debt forums. Apparently the firm who is doing this, is quite famous for it. A couple of points:-
They've jumped the normal route of applying for a ccj etc... this costs money. Basically all they hav done is download the document :-

http://www.insolvency.gov.uk/pdfs/forms/6-1.pd f

Then popped in my details and posted it. Costs 30p and could turn out quite effective if I got in touch and bargained.

Just been reading the actual statutory demand form 6.1 they sent me and the section which indicates the appropriate court, they have written "YOUR LOCAL COUNTY COURT, OR COMBINED COURT."

Any application by you to set aside this demand should be made to that court.

Under that they've written: "FOR CONFIRMATION OF YOUR RELEVANT COURT, OR IF YOU BELIEVE YOU HAVE GROUNDS TO SET ASIDE THIS DEMAND, AND WOULD LIKE SOME ADVICE PLEASE CONTACT OUR OFFICE ON 0*** *** ***3"

This seems very unprofessional and very much like a ruse to get me to phone. Surely on such an official document they have to name my court properly?

Lastly, I'm not gonna contact them, like you say yourself that may be construed as proof I've recieved the document, If you're interested to know how this turns out I'm only happy to keep intouch, and again thanks for the time you've taken to answer!

Stezza!

[gavindyer]

Hi

Just receaved the very same letter as you have - i was just woundering how you are getting on with it?

I would really appreciate it.

Thanks

Gavin