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

 

[beaver74]

is this the same as a small claims court as i have had a ltd company that has ignoard all coert letter
the law what a waist of oxygen

 

[eddielarge]

Basically its a 21 day winding up order, if they dont pay you can windup company,, however if the company is so in debt it wont matter because they still wont pay,and just go bust... it works on companies that are just avoiding paying u,

 

[Oli]

Its not as simple as your mate is making out, firstly the debt has to be over £750, then for you to be able to just send a stat demand, it has to be undisputed, if it is disputed you have to obtain a court judgement then you can send the stat demand, and to wind the company up, you have to pay the fee, which you may get back if the debtor has enough money to go round when its all divided up. The fee is somewhere in the region of £500.

Most debtors, who are effectivley bankrupt, will look for someone to wind their company up, so they dont have the cost themselves of voluntary winding up.

Best bet is a CCJ then trasnfer up to the high court, then instruct a bailiff.

The stat demand is a good tool for scaring someone who doesnt understand the system into paying up, but a call to the citizens advice or similar would have them seeing through the scare tactic and holding out to court.

They can even wait say 20 days, then apply to the court for the stat demand to be set aside disputing the debt.

Like I said it can be a good cheap way of scaring someone into paying, but its my no means the golden goose you mate has made it out to be.

Another good tip is to complete a County Court application form and send it with a letter to the debtor stating that if payment is not recieved in X days the application will be submitted as drafted.

And another tip is, if someone bounces a cheque on you send them a 'notice of dishonour' letter immediatley, it will help the case no end at the court stage.

Im clued up on all this stuff at the moment, I've had to go through the process to recover a £900 debt from a tiling job last year, just this week I got the cheque for the full amount, court costs and interest from the baliff.

Its a long drawn out process via small claims court, but if you follow the stages through its quite straight forward.

The threads in the elite section on Tilersforums and i dont think there will be many on here who will have access so if anyone finds themselves in a similar predicament, which was basically a customer making up excuses not to pay and boucning / cancelling cheques left right and centre, then ignoring all contact give me a shout, ill happily share my experience of the small claims route, main thing is to keep the chin up and stick with it, it gets a bit depressing chasing a big debt but its worth it when the money lands on the doormat.

Oli

 

[eddielarge]

Its not as simple as your mate is making out, firstly the debt has to be over £750, then for you to be able to just send a stat demand, it has to be undisputed, if it is disputed you have to obtain a court judgement then you can send the stat demand, and to wind the company up, you have to pay the fee, which you may get back if the debtor has enough money to go round when its all divided up. The fee is somewhere in the region of £500.

Most debtors, who are effectivley bankrupt, will look for someone to wind their company up, so they dont have the cost themselves of voluntary winding up.

Best bet is a CCJ then trasnfer up to the high court, then instruct a bailiff.

The stat demand is a good tool for scaring someone who doesnt understand the system into paying up, but a call to the citizens advice or similar would have them seeing through the scare tactic and holding out to court.

They can even wait say 20 days, then apply to the court for the stat demand to be set aside disputing the debt.

Like I said it can be a good cheap way of scaring someone into paying, but its my no means the golden goose you mate has made it out to be.

Another good tip is to complete a County Court application form and send it with a letter to the debtor stating that if payment is not recieved in X days the application will be submitted as drafted.

And another tip is, if someone bounces a cheque on you send them a 'notice of dishonour' letter immediatley, it will help the case no end at the court stage.

Im clued up on all this stuff at the moment, I've had to go through the process to recover a £900 debt from a tiling job last year, just this week I got the cheque for the full amount, court costs and interest from the baliff.

Its a long drawn out process via small claims court, but if you follow the stages through its quite straight forward.

The threads in the elite section on Tilersforums and i dont think there will be many on here who will have access so if anyone finds themselves in a similar predicament, which was basically a customer making up excuses not to pay and boucning / cancelling cheques left right and centre, then ignoring all contact give me a shout, ill happily share my experience of the small claims route, main thing is to keep the chin up and stick with it, it gets a bit depressing chasing a big debt but its worth it when the money lands on the doormat.

Oli

OLI thankyou for the info but a small claims court is no good for a debt of £15k ,
So what do i need to do ,,appart from batter him

 

[pennywise]

Its at this point I wish I lived in germany they don't even have or understand the term bad payer or baliff Must be quite worrying for you m8.

 

[Johno]

sorry eddie, but how did you let it get to 15k

 

[rocker]

Good grief.

 

[eddielarge]

sorry eddie, but how did you let it get to 15k

LONG story short , but basically was giving a testing contract by this company to carry out pir tests on high rise flats in lambeth, after there was a fire in one of the blocks due to bat electrical wiring.

basically agreed £40 a circuit , after the first invoice of £4k was paid i just steamed on, and the following month i put the invoice in, and im still waiting...

 

[Mark2009]

LONG story short , but basically was giving a testing contract by this company to carry out pir tests on high rise flats in lambeth, after there was a fire in one of the blocks due to bat electrical wiring.

basically agreed £40 a circuit , after the first invoice of £4k was paid i just steamed on, and the following month i put the invoice in, and im still waiting...

Hi was it a big company? and did you sign contracts.

Thanks

Mark

 

[Guest123]

basically agreed £40 a circuit

Fair play....thats an awsome price....

 

[eddielarge]

Fair play....thats an awsome price....

yes , he offered us £20 at first then on the first day it all went wrong, with access etc,, so he had a rethink and i almost fellover when they said £40...

But untill i get paid its worthless....

The funny thing is ,, they are an air com company with no knowledge of testing , and if they offered me £40 how much are they getting,,

 

[eddielarge]

Looks like statutory demand and a thousand threats has worked as i have recieve £6000 this week with the balance agreed to be paid on 1st May 2010

 

[Sintra]

Nice one next rounds on you.

 

[flip73]

congrats, i was just about to post that stat demand kind of worked for me, but because it was over a few invoices they contested a couple and still ended up in court , but won in the end.

 

[bugsy]

Nice one! now go for the intrest and expenses