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How much do you owe please and when was the SD served on you and how was it served?
We owe £23,631.28 the demand was served on the 12th, it was given to us by someone that called at our new premises.
Thanks. Do you dispute the amounts demanded?
No we do not.
From what you say you can afford to pay the amount demanded. Is that correct?
No, unfortunately we are severely in debt, we owe money to our bank, HMRC,credit cards etc. we only manged to pay them £2,500 because a customer paid a large bill for our work by coincidence that week.
Thanks. You can challenge the statutory demand within 18 days of receipt however you would need to say why you dispute the amount or at least sum of the amount claimed in order to challenge it and from what you say you do not dispute it. If you are not able to dispute some or all of the debt you cannot challenge the demand successfully. If you can find a basis to dispute some or all of the amount it is possible to challenge the demand in court.
These are the forms you need to do so:
If you are not able to challenge the demand then what follows is that the creditor can apply for insolvency proceedings against you whereby your assets will be taken into the control of a trustee and distributed amongst your creditors. Once you are discharged which is typically after a year or more from bankruptcy your debts will be wiped clean save for some debts to the Crown.
There is nothing stopping you coming to a payment arrangement by agreement with the landlord if he agrees to the same and if you can you can ask him for written confirmation that the statutory demand is set aside.
Is there anything above I can clarify for you?
What if after this payment we do not hear from the LL
This is the £2500 you have already paid?
How did you pay it - e.g. by cheque and letter or electronic transfer? If by letter did your letter say anything?
I transfered the money electronically , and sent an email with details and terms that we would make further payments.
Thanks. If the landlord has not responded to you then you can either do nothing and continue to pay as per your proposal, contact the landlord and chase him for a response explaining that you have no money or assets to pay more at present and emphasising the pointlessness of any insolvency proceedings accordingly or challenge the statutory demand as above.
If you can make it clear to the landlord that there are no significant assets which you own (if true) then he would do well to consider that it is his interests to allow you to try to pay gradually rather than try to make you bankrupt. The latter option cannot recover more than you own.
Thank you Joshua one further thing, as we have no assets at all other than the machinery we use for our business which is picture framing and these are my tools of my trade, if we are declared bankrupt will these be seized to repay the debt?
Tools necessary for your livelihood are exempted from bankruptcy provisions and cannot be taken into account. You can find full details of all exemptions (there are quite a few) here:
Thank you again Joshua.
A pleasure. I hope you are successful in achieving an amicable payment arrangement.
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