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Small claims v Stat Demand - choice ?

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daisyflower

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Sep 1, 2009
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Hello
been chasing a £1200 b2b sole trader debt now for 3 months (bounced cheque for £850)

had debt collectors onto it - totally useless !!

its now decision time...

do i go to court (as stated i have a £850 bounced cheque - so should get judgement)

or

do i just issue a stat demand. (happy to spend the extra making him bankrupt)

Ive read and re-read all the info - so my head is spinning, and really don't know which avenue is best.

Shall i just flip a coin and see where it lands...

what is the answer ?

HELP !!
 
They can defend the claim, or even if it gets awarded a judgement, then they can have it set aside, the court claim can go on for months.
I would say stat demand for a sole trader, but no expert with them.
If you do go down the route of the courts, just be patient as it can take approx 6 months to get a court hearing date.
 
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Ref Richie01 - they will struggle to defend the claim as the bounced cheque will be seen as admission of liability

If you are genuinely happy to spend 'good money after bad' pursuing this one to bankruptcy then go with stat demand.
 
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this is the problem - im not genuinly happy to spend it I have far nicer things to spend £500 odd quid on -but i need to prove that we are not going to be walked over - and would set a precedent for future customers.

but - he might immediatly pay when he gets court papers, he might not...
and if i have to make him bankrupt - i might loose all of it......
 
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GRDCredit said:
Ref Richie01 - they will struggle to defend the claim as the bounced cheque will be seen as admission of liability

If you are genuinely happy to spend 'good money after bad' pursuing this one to bankruptcy then go with stat demand.
Click to expand...

I understand this goes in the favour of Daisyflower, but its only part payment not full, so they may defend part of the claim.

There are many out there that know how to work the court system.

On the bad side, both will cost you money but you can ask for your costs to be included in the amount owed and don't forget interest.
 
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The stat demand costs nothing except the cost of the process server but to make someone bankrupt costs about a grand.
 
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Hmmm
£1000 - i thought it would cost about £400 to go down the bankruptcy route - though maybe i have got it wrong....

PI how much do you charge to issue a stat demand - i understand it has to be in person
 
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PI Guy said:
The stat demand costs nothing except the cost of the process server but to make someone bankrupt costs about a grand.
Click to expand...

If they are local to you, I would be inclined to deliver it myself and note down the name of the person on reception I handed it to.

Otherwise, recorded/special delivery.
 
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Does this person have any assets? i.e. a house?

If he doesn't and he stands to loose nothing (except his name in small print in the local rag) then by making him bankrupt you may actually be doing him a favour.

Just wanted you to see the other side of the coin before you "throw good money after bad".

Bankruptcy isn't the taboo subject it was a few years ago - many people are using it as a way to start a fresh.

You make him bankrupt, if he has no assets what does he lose? If he has bad credit etc it will be no different - he will be discharged after around 12 months and then life starts afresh for him.

P.S. Stat demand papers don't need to be served personally, they can be done so by recorded post
 
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Lucyauty said:
Bankruptcy isn't the taboo subject it was a few years ago - many people are using it as a way to start a fresh.

You make him bankrupt, if he has no assets what does he lose? If he has bad credit etc it will be no different - he will be discharged after around 12 months and then life starts afresh for him.
Click to expand...

Is it really as simple as that? I thought that discharged bankrupts couldn't get credit or even open a bank account?
 
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so really ....

they could be taken to court - and they play the system and 'maybe' repay the debt at £5 per week for ever... or not all

or

we could make them bankrupt - but it doesn't really matter as it will soon pass

what a depressing tale !
 
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daisyflower said:
Hmmm
£1000 - i thought it would cost about £400 to go down the bankruptcy route - though maybe i have got it wrong....

PI how much do you charge to issue a stat demand - i understand it has to be in person
Click to expand...
A stat demand doesn't have to be done in person BUT if they start to say they didn't get it and try and set it aside then its better if it were served by a process server. It also kind of underlines the seriousness for them. BTW I don't discuss prices on the internet but by all means PM me if you need to know.
 
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daisyflower said:
so really ....

they could be taken to court - and they play the system and 'maybe' repay the debt at £5 per week for ever... or not all

or

we could make them bankrupt - but it doesn't really matter as it will soon pass

what a depressing tale !
Click to expand...

Thing to think is i bet you're not the only person who he has done this to - whether it be credit cards, loans etc. So he probably wouldn't be able to get credit anyway.

Bankrupts can get bank accounts and as Geoff said as time passes the impact lessens.

You wouldn't just wipe out your own debt but everyone elses too :eek:
 
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Just to add also, it is very easier for the debtor to get the Stat Demand set-aside. They could also just reduce the debt to £749 which would mean you really are powerless :mad:

I know i have skirted around it before but do they own their own home? Have they got anything to lose?
 
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My clients have often used statutory demands as a debt collection tool for bad debtors. It has worked many times and the debtor has paid up. It costs nothing to send and is a very scarey form to receive. You have a bounced cheque to the debt is undisputed. This is a classic statutory demand situation.
 
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Not sure at this moment what their assets are...

the more I read on this forum, and from other users - the more depressing it gets.
It seems the only way to ensure customers pay their bills is to get the money upfront !!
 
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daisyflower said:
Not sure at this moment what their assets are...

the more I read on this forum, and from other users - the more depressing it gets.
It seems the only way to ensure customers pay their bills is to get the money upfront !!
Click to expand...

Basically yes. If it is any consultation I am currently working with a client who paid £95k for a service that hasn't been performed.
 
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