Abbey National, DLA : LUSENET : Repossession : One Thread

Has anybody recieved letters from DLA demanding full and final payment within three days or they intend to serve a statutory Demand in Bankruptcy? If so what next?

-- Alex Carlisle (, June 01, 2001


No, but I'm pretty sure I've read some threads mentioning this fairly recently on this on Q&A, giving details of how to respond in the unlikely event of this course of action ever happening.

I also believe that Carol Riley has framed an opinion on this issue, and might be worth contacting.

-- Eleanor Scott (, June 02, 2001.

When you get the statutory insolvency demand from the solicitor of your foe (who would have also sent the demand to the court), you'll have just 18 days to respond with an application for set aside to the court. If you don't apply for set aside, it is assumed that you accept bankruptcy. Get the set aside forms from the court (two free, scrappy, non user friendly documents) and then perhaps get your friendly solicitor from the Citizens Advice to help you fill them in (saves making any mistakes). In person, deliver them to the court with an affidavit - a written declaration of honesty (to which you'll have to swear, in person, in the court office - a 5 minute, no appointment, in and out job). It is on the affidavit that you have to set out your reasons for application for set aside (there is no space or requirement to do so on the forms). Your reasons may include the fact that bankruptcy is an inappropriate way of dealing with the claim because the claim is disputed and unproven (e.g. documents not supplied to you from their solicitor) and perhaps there is no money judgement order. The proper use of such demands is where the court is used to instigate the distribution of a debtors assets in obvious cases of undisputed, proven debt. Make the affidavit part of your application for set aside VERY clear; it has been known for judges to refuse set aside even when it is obvious that the demand was an inappropriate action. It's crazy to think that a judge, without being presented with any proof, reads and then just believes the claim that someone owes somebody else some money, and simply says "yep, make them bankrupt". It would seem that to make a good living, all you have to do is go around accusing everybody that they owe you money, serve some demands and wait for the cash to come rolling in.

-- Richard Butler (, June 02, 2001.

I wonder who'll be the first person to use the Human Rights Act in this kind of unequal and unfairly arbitrary situation (as described above by Richard)? I've heard talk that Article 8 (right to a fair hearing) and Protocol 1 (right not to be deprived of one's property) might be worth pursuing.

-- Eleanor Scott (, June 04, 2001.

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