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eann
Junior Member
171 Posts |
 Posted - 10 May 2008 : 20:04:38
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I have been served with a stat demand I have assets worth much more than the debt, but i am not in a position to pay immediately?
I have offered security for the debt by way of fisrt charge for many times more than the debt value, The creditor is being very aggressive and I think they will serve a petition on me next.
What happens if they do serve the petition and it goes to court will a judge make me bankrupt? I have offered repayment proposals, and 1st charges over unencumbered assets?
Help, I do not want to become bankrupt? I want to pay, and will pay once my assets that are being marketed are sold.
What do I do? Do courts make people bankrupt in these situations, my net equity is 10 times more than the debt. My concern is this will be zero if a reciever fire sells my company assets and properties.
HELP.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 10 May 2008 : 22:28:41
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Hi there
When served with a statutory demand you have 18 days in which to defend this. After 21 days the creditor can petition for your bankruptcy.
Depending upon the arguments put at court the judge may declare you Br or may allow a period of time in which to reasonable pay off all of these debts.
It is a lot better to have someone in your corner not just for moral support but for some real push back on the day. You also need to have a VERY credible plan to demonstrate how the funds can be repaid in X time.
If horror of horrors actually happens and you are made Br it may not be the end of the world. It is possible to propose an IVA out of bankruptcy in the early stages. How much is this debt for and do you have any other debts?
I really suggest you call someone who has experience of both raising funds quickly and are capable of representing you both with a creditor and the court.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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eann
Junior Member
171 Posts |
Posted - 11 May 2008 : 22:18:20
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What happens if the demand is set aside, is that the end of the matter, or simply back to the beginning of the process, where they demand again etc.. What are the dangers of setting aside?
I have been given an undertaking that the other side will not serve a petition without serving me 5 days notice prior to service.
I am not sure how this protects me, but the acting solicitor advised me this would allow me to set aside even though, I am out of the 18 day period.
Should I set aside now and not chance waiting for the bp to be served upon me?
i feel i have strong grounds for this to be achieved, the debt is secured, but they claim in the demand that they value the security at nil.
This is totally misleading and incorrect? I have independant valuations of the property which show the equity in the property exceeds the debt amount.
I have sent proposals, and offers to the claimant, but they have let the 18 days lapse and still have not responded to my emails and offers, should i set aside in any event to protect my position? They want me to attend another meeting at their solicitors, last time they served me the demand, so i have reservations about going a 2nd time to recieve a BP.
Any suggestions |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 11 May 2008 : 22:48:48
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Hi there
I suggest you really focus on raising the funds rather than worry about the proceedures. Time is critical so if they do go for a petition it will help the case in court with the Judge if you can show you have taken steps to release funds already.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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melanie_giles
Senior Member
1191 Posts |
Posted - 11 May 2008 : 22:56:40
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It is not the role of the Judge to suggest the way that the debt is to be paid, and at the end of the day unless there is a realistic prospect of the creditor getting paid, rather than security for the debt, a bankruptcy order will likely be made against you.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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will a judge make me bankrupt?
