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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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I have been issued a Statutory Demand from a liquidator for

Resolved Question:

I have been issued a Statutory Demand from a liquidator for a company of which I was a director.
I panicked, Googled and picked at add for "Statutory Demand Set Aside"
The Solicitor I contacted said he could help to get it set as side on the basis of our conversation.
I had to pay £770, from which the site that I clicked on earned £330 - it was supposed to be a no win no fee service. This was taken over the line, and was to access if the case was acceptable for a no win no fee case.
For my monies I received a phone call to the other party, an offer to recall the demand - based on that the whole of the demand was incorrect, but was then told the demand would just be re-issued and corrected.
Given the short timescale to respond, and I have never been issued a letter of engagement by the solicitor, nor fees - apart from being told it would be £250/hr to continue ... have I been duped?
I would like to discuss the SD in a separate question.
Thank you
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. :

Hi Thank you for your question and welcome.

Alex J. :

My name is ***** ***** I will assist you.

Alex J. :

Do you actually admit that the debt is owing?

Alex J. :

On what basis have they made the SD?

Alex J. :

Kind regfards

Alex J. :


*regards

Alex J. :

AJ

Customer:

There ia a debt, but not the one listed in the SD

Customer:

The basis of the SD is that I haven't kept to a supposed time limit for repayment that never existed.

Customer:

They have also added Statutory Interest, whereby there has never been an agreement to add interest to the debt, not at what rate?

Customer:

The delay has been caused because property needed to be sold, this has now been achieved, and completion will be in a month or so.

Alex J. :

Hi,

Alex J. :

Thank you.

Alex J. :

So do you owe a debt to the company?

Alex J. :

In relation to this lawyer - are they regulated by the Solicitors Regulation Authority?

Customer:

.Yes, I owe the liquidator a debt and agreed a sum for settlement in full, having already made a significant repayment of the debt. The SD states that I have made no payment at all, cites the original sum is still owing, and Statutory Interest added at 8% on the whole sum.

Customer:

So far as the solicitors "We are regulated by the Solicitors Regulation Authority ID: 58960 and the Solicitors’ Code of Conduct 2011 applies to us. For more information and a copy of the Code visit the Authority’s website at www.sra.org.uk"

Alex J. :

Hi, Thank you. The first thing to do is if you are not happy with the solicitor - then you should complain to the Solicitor first and then make a complaint to the Legal Ombudsman


www.legalombudsman.org.uk/;

Alex J. :

They have not properly quoted you costs or given you a retainer so may be in breach of client care rules;

Alex J. :

Secondly in relation to the stat demand - do you have any form of agreement in writing where by the lquidator agreed a repayment plan? How much do you owe? Kind regards AJ

Customer:

Original Debt was £59,191

Customer:

£20,000 already repaid

Customer:

SD is for £59,191 plus interest @ 8%

Customer:

I made an offer of a further £20k on 31st Oct 2012 in full and final settlement

Customer:

This was refused on 09/11/12

Customer:

This is the timeline, sorry if it is too much for the scope of the question - please ignore if it is ..

Alex J. :

Hi, Thank you. This important what I need to understand is if the liquidator at any point agreed in writing to give you forbearance in exchange for time to raise the funds?

Customer:

This, but it was undated.

Customer:

It was supposedly sent the day after my mother died.

Customer:

They send a further copy, undated on 2nd Jan

Customer:

with this cover:

Customer:

Good afternoon Keith, Michele

Please find attached the demand letter you received early in October.

Due to the sad personal circumstances you were encountering at the time we allowed a further period of grace.

We are fast approaching another anniversary with no progress to report to creditors.

Unfortunately we will have to commence formal proceedings if we do not receive the funds within 21 days.

Your urgent attention is required.

***** *****

MB Insolvency

Customer:

My mental state at that time was not good and I was under the care of the Mental Health Unit. I explained that to them.

Good afternoon Keith, Michele

Please find attached the demand letter you received early in October.

Due to the sad personal circumstances you were encountering at the time we allowed a further period of grace.

We are fast approaching another anniversary with no progress to report to creditors.

Unfortunately we will have to commence formal proceedings if we do not receive the funds within 21 days.

Your urgent attention is required.

***** *****

MB Insolvency

Customer: The amount originally was £59,191 of which I have paid £20,000
Alex J. :

Hi, Thank you have you tried offering them a charge over your property in exchange for a forbearance period?

Customer: We have sold - subject to contract - and if they had contacted me prior to the SD, they were likely to have gotten another lump sum in a few months!
Alex J. :

Hi, Thank you have you disclosed to them contract to show you have sold or got your solicitor to confirm the same in writing.

Alex J. :

Ultimately once the serve the SD you will have 21 days but if you need more time and to convince them you will have to give them something in writing.

Alex J. :

Can your solicitor give them an undertaking to pay for example?

Customer: I have disclosed the contract of sale - no reply!
Customer: the SD is factually incorrect tho - what do Ido so far as their claim.
Customer: do I still need to write to the court - within 18 days and explain why it is factually incoorect.
Customer: im exploring personal bankruptcy.
Customer: I'm sorry that this has turned into more that a simple question!
Alex J. :

Hi, Thank you. Have they actually withdrawn it and reissued it?

Customer:

Not yet

Alex J. : The problem is you do acknowledge you own them a sum of money. As long as the demand is over £750 it is still technically valid. You can contest the value of the demand at another time.
Alex J. : I would recommend talking to the liquidator and trying to force them to agree a forbearance agreement in return for not issuing a bankruptcy petition after 21 days.
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