A statutory demand is a demand for payment of a debt over £750. It’s also a warning that your creditor may start bankruptcy proceedings against you if you don’t pay within 21 days. A creditor does not need to get the court involved to serve a statutory demand.
It’s worth noting that no-one can push for bankruptcy unless you owe them £750 or more. So if you receive a statutory demand, you could consider paying enough of the debt to bring the total under that minimum. This isn’t the best way of managing your debt – and you’ll still need to deal with the remaining debt – but at least you’ll no longer face the immediate threat of bankruptcy.
Many people with multiple unsecured debts look into debt management or debt consolidation as a way of reducing their monthly outgoings and simplifying their finances.
The option that’s right for one person may not be right for another, since debt management and debt consolidation both have their benefits and drawbacks. So it’s a decision they should only take after talking to an expert debt adviser – and one of the factors that adviser will consider is the cost and availability of a debt consolidation loan. Clearly, that can vary from person to person and from month to month, as the credit market goes through good times and bad times.
What is County Court action really like? On television, courts tend to be shown as glamorous places where defendants make passionate, witty speeches to solemn judges and fascinated juries. So depending on the kind of person you are, the thought of going to County Court could be either exciting or terrifying.
But real life is very rarely like TV.
Council Tax pays for local services, from policing to refuse collection. It’s a priority bill, which means paying it is even more important than paying your non-priority bills (such as credit cards or unsecured loans), as the consequences can be much more severe.
"Will my creditors call in a debt collection agency?"
"When – and why – would they do this?"
These are extremely important questions if you’re in debt, especially if you’re struggling to make your payments. Unfortunately, there are no ‘standard’ answers, as it depends on which company you owe money to.
As with most questions about debt, the answer is `It depends`.
It depends on the individual. Not just the amount they owe, but their financial history, their attitude to dealing with creditors – and their confidence in their own financial skills.
To answer this question, we need to start by taking a look at the Consumer Credit Act 1974.
Consumer Credit Act 1974
The Consumer Credit Act 1974 is a piece of legislation that regulates almost all aspects of personal credit (for amounts up to £25,000), protecting borrowers and lenders alike.
When dealing with debt becomes unaffordable, overly complicated, or both, many people turn to a debt management specialist like Gregory Pennington.
Gregory Pennington’s Debt Management Programme can deal with unsecured debts – debts not secured to goods or property (a house, for example, or a car or TV).
When dealing with debt becomes unaffordable, overly complicated, or both, many people turn to a debt management specialist like Gregory Pennington.
Gregory Pennington’s Debt Management Programme can deal with unsecured debts – debts not secured to goods or property (a house, for example, or a car or TV).
“This morning, I got a letter from a credit card company I hadn’t heard from since 2000. I’d forgotten all about it, but they say I owe them £2,200. What do I do?”
Mr X.
If you’re worried about old debts coming back to haunt you, you might like to hear about the Limitation Act 1980.