22 Mar 2015

A question about : Statutory Demand under section 268(1)(a) of insolvency act

Hi,
I have just received a Statutory Demand from my old employer the sum of just over a grand on overpayment. Their mistake on commission. I paid back Ј700 just before Xmas but advised I was going through a painful separation from my wife. I have just come out the other side and have moved back to my home city of Leeds. I was hoping someone could give me some advice on how to deal with this as there is no way at he moment I can afford to pay this debt off under the terms they are demanding, immediate payment in full!!! I would not even know about this threat if my wife had not forwarded my mail with now just 9 days until their deadline. Is there any way I can prevent them from making me bankrupt. Seems crazy for such a small amount. Can a company do this unilaterally. ? Surely everyone deserves a chance to plead their case before a judge prior to such an extreme can be implemented?
Also this is the first formal notice I have received ( and only because my wife forwarded it onto me ) again I ask surely this is not possible?

Best answers:

  • If you pay it off in full there is no way you can be made bankrupt. If you even pay off enough to bring it down below Ј750 you could have the demand set aside as then being below the bankruptcy threshold. They would be a bit looney to try for that money anyway.
  • I did think it was a bit crazy ..so if I get it down to Ј750 they cannot proceed regardless??? That is good news. On a more general basis can you really be made unilaterally bankrupt when you have no idea such a notice has been made (which could have been the case with me) ?
  • No. The statutory demand is not making you bankrupt. There would need to be a bankruptcy petition served on you as well later on, which would then have a court hearing you would attend.
  • Once a S(tatutory) D(emand) is served you have 21 days to defend it or get the amount owed down to below Ј750 (as others have said).
    Failure to do so will normally lead to the issuing of a Bankruptcy Petition against you .
  • Do you have any other debts ?
    Sometimes these people can do you a favour.
  • If you step back and think for a moment, it would cost your old employer nearly a grand to petition for your bankruptcy, which from their point of view would be doubling the debt with no guarantee they would even get their fee back, so I believe it would be extremely unlikely they would go down this route. Statutory demands are just a bullying tactic. Write to them, explain your situation and offer what you can comfortably afford; after all they would be getting something(better than nothing at all), and it would be resolved over time.
Категория: