Statutory Demands

[redninja.13]

Hi Guys

been reading up on these on the internet and have a few questions I can't seem to get answered..

If the debtor disputes it, will I have to go to court to argue my case for the debt, or is the dispute handled another way?

If it gets as far as a winding up order.....

If company A has a winding up order but the business is trading in a shop/salon/pub which is under a different name, are they likely to be able to hand a defunct company over to the liquidator and continue trading under Company B in the same shop/salon/pub?

When the Statutory Demand has been issued, does that stop them from being able to fold the company? If not, is there a form I can submit to Companies House or something?

My main worry is that they will fold this company and start with a clean slate for company B

 

[Legalbeagle]

Just before I write a huge reply, can you just clarify

Are you thinking of issuing a statutory demand against a limited company based in England and Wales, and then using that as proof of insolvency for issuing a winding up petiton ?

Just want to be clear so that the answer I can give you is right.

 

[redninja.13]

Just before I write a huge reply, can you just clarify

Are you thinking of issuing a statutory demand against a limited company based in England and Wales, and then using that as proof of insolvency for issuing a winding up petiton ?

Just want to be clear so that the answer I can give you is right.

Its against a Ltd Company, but based in Scotland.

Obviously I'd rather have the money, but I am prepared to go all the way with it

 

[yourcreditmanager]

Hi

I'd be careful here... you should only really consider statutory demands if there are no grounds for the sum demanded to be disputed. If there is the slightest grounds for it to be contested the receipient of the demand can apply to have it set aside - and potentially seek costs for doing so against you. Have you taken legal action and secured a judgement/decree against the company already? That may have a different bearing on the matter.

From the contents of your post, you sound worried that the company you intend to serve it against could cease to trade in the near future. The service of a Stat Demand itself will not help you prevent this from ocurring I'm afraid...

Sorry if this reply doesn't sound very positive... but any questions please let me know.

Michael

 

[redninja.13]

Hi

I'd be careful here... you should only really consider statutory demands if there are no grounds for the sum demanded to be disputed. If there is the slightest grounds for it to be contested the receipient of the demand can apply to have it set aside - and potentially seek costs for doing so against you. Have you taken legal action and secured a judgement/decree against the company already? That may have a different bearing on the matter.

From the contents of your post, you sound worried that the company you intend to serve it against could cease to trade in the near future. The service of a Stat Demand itself will not help you prevent this from ocurring I'm afraid...

Sorry if this reply doesn't sound very positive... but any questions please let me know.

Michael

I don't think they can dispute it, I have a signed contract etc
As its a high balance, I couldn't take it to the small claims court, and I don't really have the money to employ a solicitor to charge me £100 a letter. The SD seemed like the best option for me, they're telling the DCA I sent it to they are refusing to pay

I thought there was some paperwork I could file to stop them from being able to dump this company untill I am paid, and I thought that was the SD :-/

 

[Geoff T]

I don't think they can dispute it, I have a signed contract etc
As its a high balance, I couldn't take it to the small claims court, and I don't really have the money to employ a solicitor to charge me £100 a letter. The SD seemed like the best option for me, they're telling the DCA I sent it to they are refusing to pay

I thought there was some paperwork I could file to stop them from being able to dump this company untill I am paid, and I thought that was the SD :-/

Some misconceptions in this that need to be corrected...

"Small claims" can deal with claims up to £100,000, or more if both parties agree...

If they are refusing to pay (having told the DCA that) the claim is obviously in dispute, so you can't use an SD anyway...

SD's do not - by their nature - automatically prevent companies going into liquidation/administration (if anything would prove that the directors had done the right thing!) to stop a company going down this route would require a valid reason...

Everything you're saying in your posts yells at me that you need a solicitor, and if you can recoup the costs (bearing in mind the inference you gave on the amount owed) why the heck shouldn't you use one?

If they win for you - and you get costs awarded - you'll not pay the £100 per letter in the end, so why not get the job done properly??

 

[yourcreditmanager]

Redninja

In fairness they clearly are disputing the balance... contract or no contract - and if you serve a Stat Demand without having secured a judgement beforehand in these circumstances you will be throwing good money after bad. Trust me.

It sounds like you will need to go to court to get a resolution on this one unless you can agree some kind of full and final settlement deal with the customer. To achieve this I'd recommend you use a solicitor to write to them in the first instance on a without prejudice basis offering to accept a certain proportion of the balance to be paid (say 90%) to start any potential negotiations going. I think if you shop around you could get such a letter written for a lot less than £100.00.

Michael

 

[redninja.13]

Redninja

In fairness they clearly are disputing the balance... contract or no contract - and if you serve a Stat Demand without having secured a judgement beforehand in these circumstances you will be throwing good money after bad. Trust me.

It sounds like you will need to go to court to get a resolution on this one unless you can agree some kind of full and final settlement deal with the customer. To achieve this I'd recommend you use a solicitor to write to them in the first instance on a without prejudice basis offering to accept a certain proportion of the balance to be paid (say 90%) to start any potential negotiations going. I think if you shop around you could get such a letter written for a lot less than £100.00.

Michael

I'm really not prepared to have a settlement figure, they have no right to keep this money. I'd rather lose it and have their business liquidated then let them keep 5 or 10% and continue trading. I know how pigheaded this sounds, but there is a whole back story I probably shouldn't get into on a public forum.

This money was a loan, its not for an invoice or a job etc, so it is cash that I had, that they are refusing to pay back. I'm certain in the eyes of the law, with the paperwork I have, they would have to pay it, I just don't have the cash upfront for a solicitor to drag everything out :/

I know these guys have the means to make me a decent offer for a payment plan, but they say that if I get a solicitor involved they will only offer something stupid like £20 a month.

And Geoff T - when I went to the Sherrif's Office, they told me I have to be under £5k? These wasters won't agree to anything that will make my life easier, all they want to do is mess me about and get away with paying nothing/minimal amount.

 

[Legalbeagle]

In the situation you describe, its an interesting quirk of law but that debt is not a "debt due and payable", and you would not be able, in my view, to issue a stat demand on it.

You would need to being a money claim action first, to establish the breach of the agreement you made, to then have a judgement to enforce.

A loan of money creates a "chose in action", not a debt in the true sense.

 

[Geoff T]

I'm really not prepared to have a settlement figure, they have no right to keep this money. I'd rather lose it and have their business liquidated then let them keep 5 or 10% and continue trading. I know how pigheaded this sounds, but there is a whole back story I probably shouldn't get into on a public forum.

This money was a loan, its not for an invoice or a job etc, so it is cash that I had, that they are refusing to pay back. I'm certain in the eyes of the law, with the paperwork I have, they would have to pay it, I just don't have the cash upfront for a solicitor to drag everything out :/

I know these guys have the means to make me a decent offer for a payment plan, but they say that if I get a solicitor involved they will only offer something stupid like £20 a month.

And Geoff T - when I went to the Sherrif's Office, they told me I have to be under £5k? These wasters won't agree to anything that will make my life easier, all they want to do is mess me about and get away with paying nothing/minimal amount.

1st - in direct response... forget what the Sheriffs Office said... it's online the amount you can claim... just means the claim will be multi-tracked (don't ask!)...

2nd - if you're certain of your view, and are determined - then solicitor is the way to go... I know a commercial debt specialist here I can put you in touch with if you want to talk to him... I've known him for over 10 years, and trust me - he knows his thing!

up to you...

 

[redninja.13]

1st - in direct response... forget what the Sheriffs Office said... it's online the amount you can claim... just means the claim will be multi-tracked (don't ask!)...

2nd - if you're certain of your view, and are determined - then solicitor is the way to go... I know a commercial debt specialist here I can put you in touch with if you want to talk to him... I've known him for over 10 years, and trust me - he knows his thing!

up to you...

Yes if you could that would be brilliant, I had a solicitor supposed to be calling me back on Wednesday, the fact that they didn't/forgot/couldn't be bothered doesn't fill me with much confidence regarding how they would deal with my case....

 

[Geoff T]

Yes if you could that would be brilliant, I had a solicitor supposed to be calling me back on Wednesday, the fact that they didn't/forgot/couldn't be bothered doesn't fill me with much confidence regarding how they would deal with my case....

Sorry neighbour - short notice, had to be out all day...

Pls email me (via my sig), I'll email my contact, and "CC" you in so you both know what it's about...

 

[redninja.13]

Sorry neighbour - short notice, had to be out all day...

Pls email me (via my sig), I'll email my contact, and "CC" you in so you both know what it's about...

Which Sig, they both have different email addresses haha

 

[Method Man]

Which Sig, they both have different email addresses haha

I'd go for the first one unless you want to go and work for them!

 

[Judge's Demand]

Hi Redninja,

I havnt been on this forum for a while but have just read through your problem.

I know that the debtor has told your previous DCA that they are not paying but have they actually lodged a valid and genuine dispute to your claim.?

If so then no you cannot go down the SD route but if they have not then there is nothing to stop you from issuing a SD.

Once the SD is served then it is up to them to make an application to the Court to have it set aside if they strongly believe that they have a dispute. Then, as long as you can show the Court that you have made every attempt to resolve the issue before issuing the SD and that they did not inform you of a valid and genuine dispute then even if they are succesful in having the SD set aside you should obtain an order for your costs.

Not sure if you have spoken to anyone as yet or instructed anyone on it but if not then please feel free to send me a private message and I will discuss the matter with you further.

ps. We work on a 'no win, no fee' basis too so would not be asking for any upfront payments.!!

 

[redninja.13]

Hi Redninja,

I havnt been on this forum for a while but have just read through your problem.

I know that the debtor has told your previous DCA that they are not paying but have they actually lodged a valid and genuine dispute to your claim.?

If so then no you cannot go down the SD route but if they have not then there is nothing to stop you from issuing a SD.

Once the SD is served then it is up to them to make an application to the Court to have it set aside if they strongly believe that they have a dispute. Then, as long as you can show the Court that you have made every attempt to resolve the issue before issuing the SD and that they did not inform you of a valid and genuine dispute then even if they are succesful in having the SD set aside you should obtain an order for your costs.

Not sure if you have spoken to anyone as yet or instructed anyone on it but if not then please feel free to send me a private message and I will discuss the matter with you further.

ps. We work on a 'no win, no fee' basis too so would not be asking for any upfront payments.!!

Thanks PM coming your way, spoke to a solicitor from a "free legal advice" website, after calling me back 4 days later (was supposed to be 4 hours) she wouldn't discuss my case until i paid her £500........:|

 

[Geoff T]

no luck with my guy?

 

[redninja.13]

no luck with my guy?

not had word back from him yet :-(

 

[Method Man]

Thanks PM coming your way, spoke to a solicitor from a "free legal advice" website, after calling me back 4 days later (was supposed to be 4 hours) she wouldn't discuss my case until i paid her £500........:|

No work for her then!

Greedy so and so.

You've probably had a lucky escape. Solicitors like that drive me mad and, I'm sad to say, from my recent experiences they are on the increase.

£500 just for a chat - jog on!

 

[Geoff T]

not had word back from him yet :-(

not like him - have emailed an @rse kick...

 

[Geoff T]

not had word back from him yet :-(

[holds hands up] my goof on the email OP - am working on it now...

sorry:redface:

 

[Geoff T]

[holds hands up] my goof on the email OP - am working on it now...

sorry:redface:

OP - my goof with the email I sent... my guy will be in touch tomorrow... he never got the email I "CC'd"!:redface:

apologies (and feel free to explain to me: electricity, fire, the wheel!:redface

 

[redninja.13]

No work for her then!

Greedy so and so.

You've probably had a lucky escape. Solicitors like that drive me mad and, I'm sad to say, from my recent experiences they are on the increase.

£500 just for a chat - jog on!

Exactly what I thought! I have wasted enough time and money on useless people! e.g. Debt collector asking for 2k just to take my case on

Do these people not understand, someone has my money and I want it back, not I have money to throw about the land!!

£500 for a chat...... £100 for a letter........ £500 for chat #2....... before you know it, I'm the one bankrupt!! almost as bad as estate agents!!

 

[redninja.13]

OP - my goof with the email I sent... my guy will be in touch tomorrow... he never got the email I "CC'd"!:redface:

apologies (and feel free to explain to me: electricity, fire, the wheel!:redface

That's brilliant hahahaha started off my day with a chuckle!!