Statutory Demand

[eddielarge]

Hi has anyone ever issued a Statutory Damand Under section 123(1)(a) or 222(1)(a) of the insolvency act 1986.

I have been informed by a mate of mine that he issues them and he has always been paid within the 21 days.

What i have been told is that you issue these by recorded delivery and then they have 21 days to pay the debt, if they fail to respond you can take the letter to a court and wind up their company that day..

Anyone else done this before, as i have a customer who owes me £15k and even tho he keeps promising money it never turns up , and im at the point that im either going to kill him or sell the debt,,,

 

[acat]

I doubt it would be that easy no solictors fees no defence of alleged debt etc. Have a look at the link it may answer your questions.

http://www.insolvency.gov.uk/pdfs/forms/form4-1.pdf


Chris

 

[eddielarge]

I doubt it would be that easy no solictors fees no defence of alleged debt etc. Have a look at the link it may answer your questions.

http://www.insolvency.gov.uk/pdfs/forms/form4-1.pdf


Chris

The link is the same form as ive issued so not sure how it answers my question. my mate has issued them and swears its that simple. my mate has always been paid within the 21 days and he deals with bigger debts. has anyone actually issued one and then took it to court?

 

[acat]

If you read the form you would see that a WINDING UP PETITION could be issued by you. It does not close the company down and at that point fill up as many skips as you can and send it to the solictor thats working for you and when they go bankrupt the taxman takes it all you get nothing.

Chris

 

[UNG]

A wholesaler I dealt with about 15years ago before they were taken over used to do it as an effective way to collect debts usually got paid by sending the company a series of letters 3rd letter was telling them that the next stage was a winding up order that would be served in five days, ISTR they only went to court on a couple of occasions as most paid up on the threat of winding up

 

[UNG]

when they go bankrupt the taxman takes it all you get nothing.

I think the rules on the taxman being a preferential creditor changed some years ago

 

[eddielarge]

If you read the form you would see that a WINDING UP PETITION could be issued by you. It does not close the company down and at that point fill up as many skips as you can and send it to the solictor thats working for you and when they go bankrupt the taxman takes it all you get nothing.

Chris

A statutory demand gives a person 21 days warning to pay the debt. After that the statutory demand has runs it course and it can followed by a bankruptcy petition.
In the minds of a creditor or a creditor’s solicitor a statutory demand is the legal equivalent of a 'warning shot from a gun'. This is because the average debtor is so scared by 'what may follow' that they usually pay up.
In fact statutory demands are so successful that in 99% of cases following the issue of a statutory demand a bankruptcy petition NEVER is issued.
Many creditors are so shrewd that use various internet websites to let the banks, credit reference agencies and other public interest groups to publicise the statutory demand which can be disastrous for someone

I know that if a company goes bust the tax man will get first bite ,, been there done that,,but the company is a family run company of 26years and do you think they will fold for 15 k ,,


ACAT have you actually issued one or is this just based on your view

 

[acat]

I only spent 15 years in the enforcement section


Chris

 

[eddielarge]

I only spent 15 years in the enforcement section


Chris

what is that,,

just a simple question have u issued one

 

[acat]

Dont worry mate you carry on with what you want to do


Chris

 

[eddielarge]

dont worry mate you carry on with what you want to do


chris

cheers very unhelpfull

 

[bugsy]

Not as easy as you all seem to think because Ive done it even down to issuing a bankruptcy patition.

If they go to court and plead hardship , current economic climate etc they could end up paying you £100.00 per month.
I would suggest you ask your solicitor to write them a letter requesting payment within 7 days and an explianation as to why the dept has not been paid to date ( if you start litigation you will want to know what reason they will give before you go to court )
If they still don't pay up you can either issue a winding up patition or go for bankrupty but bear in mind if you do this any preferential creditors will be paid before you ( Personal guarantees, Bank loans, Bank overdraughts etc )
If you do either of the ubove it will be published in the London Gazette.

 

[eddielarge]

Not as easy as you all seem to think because Ive done it even down to issuing a bankruptcy patition.

If they go to court and plead hardship , current economic climate etc they could end up paying you £100.00 per month.
I would suggest you ask your solicitor to write them a letter requesting payment within 7 days and an explianation as to why the dept has not been paid to date ( if you start litigation you will want to know what reason they will give before you go to court )
If they still don't pay up you can either issue a winding up patition or go for bankrupty but bear in mind if you do this any preferential creditors will be paid before you ( Personal guarantees, Bank loans, Bank overdraughts etc )
If you do either of the ubove it will be published in the London Gazette.

thankyou exactly what i was looking for... i dont think the company are going to fold for 15k but was hoping the order would force a payment

 

[bugsy]

Have asked your local wholesaler to run a credit check ? might give you an insight to their financial standing,
Also you could sent a copy of the invioce addressed to each of the company directors at their home address with a covering letter recorded delivery ( details from companies house web check ) Ive done this and they go ballistic but does work

 

[beaver74]

can any one explain to me ,is this the same as a small claims court as i have had a ltd company through this and they have egnored all courts letters and courts have called it a day what a waiste of time
if this is not the same how do i go about doing it
i have tried comtacting companies house and they are not interested also