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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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i owe 16000 have little cash but own 1.8m of assets can i stop

Resolved Question:

i owe 16000 have little cash but own 1.8m of assets can i stop being made bankrupt if i was served a statuary demand
Submitted: 2 years ago.
Category: Law
Expert:  tdlawyer replied 2 years ago.

tdlawyer :

Hi welcome to the site. My name is XXXXX XXXXX I can answer this.

tdlawyer :

Having sufficient assets is not a reason to set aside a statutory demand if served on you.

tdlawyer :

However, it is something that the court will consider if a bankruptcy petition is presented.

Customer:

thank you on what basis would a court consider this

tdlawyer :

The effect of a failure to pay a statutory demand, where there is no genuine dispute, is that it deems you to be insolvent. Thus, even if you have assets, and you're technically not insolvency, the effect of failing to pay the demand if you're deemed to be insolvency and the petitioning creditor does not need to prove you are insolvency. However, the Court ALWAYS retains a discretion over whether to make you bankrupt based on you being (technically) insolvent.

tdlawyer :

In almost every case I've ever dealt with, where there are sufficient assets and there is a very reasonable prospect of those assets being sold quickly to pay the bankruptcy debt, then the Court has refused to make the bankruptcy order, instead adjourning the hearing to allow one last chance at the assets being realised and the debt paid.

Customer:

what i intend to do is if served on me i will straight away put one of my properties on the market or raise money off the equity and present that in court if it went that far

tdlawyer :

Yes, you could do this. You have a minimum of 21 days from the date the stat demand is served before a bankruptcy petition is presented.

tdlawyer :

It might be worth putting it on the market now though if you think a sale might take a long time. If not, then you should be okay if the prospect of a sale is pretty imminent, although you have to appreciate, there are no absolute guarantees because you're relying on the discretion of a judge.

tdlawyer :

Discretion is never absolute.

Customer:

i live in london and i am confident that i could have sold one of my properties in 8 weeks

tdlawyer :

Okay, then fair enough, I expect you should be okay, as if you did it immediately, it would take (from service of the stat demand) about 16 weeks or so to get a final hearing at Court. Then you would be saying that the sale should be completed in, say 4-6 weeks thereafter, which is likely to be acceptable.

Customer:

and if not last resort i would have to get a short term loan once paid i will have time to pay the loan back i know it maybe expensive but it will buy me time

tdlawyer :

Yes, that's always an option too, it's often referred to as a "bridging loan".

Customer:

thank you for your help i appreciate very much

tdlawyer :

You're welcome. Can I ask whether you're happy with the service this evening please?

tdlawyer :

Is there anything else you need to ask me please?

tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience: 11 years experience of general practice.
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