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Statutory Demand vs Application to Vary

Statutory Demand vs Application to Vary

Postby AntelopeBoy » Thu Dec 03, 2015 8:59 am

Hi,

I was wondering if anybody knows if a Statutory Demand can be issued where the debtor has applied for an Order to pay by installments?

The debt is for just over £8,000 and the debtor has asked to pay £75 per month claiming minimal to no income. Surely this is as good as an admission of being unable to pay the debt, as required in bankruptcy proceedings?

As the debtor owns multiple properties with significant equity I wish to pursue other means of enforcement (bankruptcy, charge on property etc.)

The old adage of "cash poor, asset rich" is very true here, and I cannot see how a court could allow an individual to retain assets claiming poverty when a CCJ has been issued?
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Re: Statutory Demand vs Application to Vary

Postby atticus » Thu Dec 03, 2015 9:07 am

Of course a statutory demand may be served - on the facts as posted.

The proof of inability to pay debts is the non-compliance with the statutory demand.

You will have to decide whether to seek charging orders or pursue bankruptcy. You may not serve a statutory demand for a debt that is fully secured.
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Re: Statutory Demand vs Application to Vary

Postby dls » Thu Dec 03, 2015 12:40 pm

Insolvency is fundamentally about cash flow - the inability to pay debts as they fall due.

There is however a dichotomy to which Atti points.

A charging order gives you security - if you are quite sure that the chap does own those properties in his own and sole name.

What Atti is saying (if he will excuse me) is that the choice is binary. You either get security for your debt over a property or you can prove your debt in an insolvency. You cannot do both. If the first is available (if), then might that not be a preferable remedy?
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