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tdlawyer
tdlawyer, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 1096
Experience:  Lawyer with 11 years experience in bankruptcy related issues.
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I received a statutory demand for a debt today 03/02/2014.

Resolved Question:

I received a statutory demand for a debt today 03/02/2014. It was served by hand today and the letter dated 20 January 2014. I need to apply to set it aside based on stat bar but I need advice.

The sd is served from Lowell Portfolio 1 Ltd. I last communicated with Halifax who I owed over 7 years ago. The last time I corresponded with Halifax was in a letter written to halifax on 29 June 2007 requesting to reach a payment arrangement because I was going through a rough time. Halifax never bother to respond and just passed me on to debt collectors. I have since changed addresses and then I get this statutory demand today with only 3 days to respond as they deliberately held on to the letter until today.help!!!

I need advice on what to include in a form 6.4 and 6.5 and how can I raise the issue on the SD not sent on time hence no time to get legal advice?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hi there.

tdlawyer :

Thanks for your question.

tdlawyer :

My name isXXXXX can answer this for you.

tdlawyer :

Have you beed sued for this debt in the county court at all, or is this the first you've heard for 7 years?

Customer:

I have not been sued. I have previously received demands and I ignored it. I have just checked my experian report and it is not showing there at all.

tdlawyer :

Okay, so you think it's over 6 years old and statute barred?

tdlawyer :

The hearing - Insolvency Rules 6.14 requires the petition to be served at least 14 days before the hearing.

tdlawyer :

You could therefore attend at the hearing in 2 days and inform the court when service was effected and say you need an adjournment to take advice, but that even now, you believe (without advice) that the petition is disputed due to the Limitation Act 1980.

Customer:

Yes. the lowells debt collection people however has a default date of 4 Feb 2008. The letter arrived today with date 20 Jan 2014

tdlawyer :

Okay. Then so long as there is a genuine dispute as to whether the debt it owed, the court isn't likely to make the bankruptcy order.

Customer:

There is no hearing date on document, it just states it is a statutory demand and I need to pay immediately or apply within 18 days of service to set aside demand

tdlawyer :

AH ... okay ....

tdlawyer :

In that case ...

tdlawyer :

You can write immediately to the creditor and tell them the debt is disputed and why (i.e. statute barred) and that you don't owe anything. You would ask them to withdraw the demand.

tdlawyer :

If they refuse, then you make an application to the court for the demand to be set aside.

tdlawyer :

Use form 6.4 to do this.

tdlawyer :

You should apply within 18 days of being served with the form (i.e. today).

tdlawyer :

By Friday 21st Feb at the latest.

Customer:

I really do n't have the luxury of time to wait for them to respond. Can I just request for the demand to be set aside on the bases of statute barred?

tdlawyer :

Yes, you can. BUT, if you don't write and tell them first, the court might prevent you recovering any legal costs incurred in making the application (if any).

Customer:

Does it matter that the letter is dated 20 january yet only served today.

tdlawyer :

No, that doesn't matter at all.

tdlawyer :

The only date that is relevant is the actual date of service - i.e. today, the date it was served (handed) to you.

Customer:

The letter was hand delivered and dropped through the post box hence they can say the got it to me earlier. Can I write them as well as request for the demand to be set aside.

tdlawyer :

It might have got to you sooner - it has to be personally served, unless they get a court order authorising some other method of service.

tdlawyer :

You can write to them - the thing you MUST NOT do is admit the debt, or say anything that gives the impression the debt is admitted.

tdlawyer :

If you do that, you will lose your limitation defence.

Customer:

I appreciate your advice. how long should I give them to respond and how can i word such a letter without admitting debt?

tdlawyer :

Tell them you want a response within 5 days, failing which, you will apply to the Court thereafter without further notice to you.

tdlawyer :

Then if you haven't heard, you make your application.

tdlawyer :

You have 18 days, don't forget, so you have plenty of time to allow then 5 days to reply.

tdlawyer :

Is there anything else you would like me to clarify for you?

Customer:

can I possibly ask more question tomorrow? I may wake up with more questions or is this session over for now

tdlawyer :

You can ask follow up questions tomorrow for free.

tdlawyer :

I wont be around until the evening though.

Customer:

thank you. You have been of great help. good night.

tdlawyer :

Thank you! Night. Please remember to rate the answer for me.

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