Statuatory insolvency demand

[lootmaker]

My father has just been served with a Statutory Demand, for a debt for over �5,000. WHat will happen. I though people get issued with CCJs, will they force bankruptcy i though people had to do that them selves. My father has no house a couple of credit cards, and lives of benefits. WHat should my ftaher do he is 65, i dont want him to worry. about it, if he keeps ignoring it what will happen advice please.

[Loosehead]

They are saying that unless he makes some arrangement to pay they will go through the courts and probably get a ccj. He should contact them and discuss his situation and make some sort of an offer to pay something even if it's only a few pounds a week. Financial institutions are much more understanding if you communicate the situation. They will avoid legal action if at all possible but all to often the "head in the sand" approach forces their hand. Citizens advice are very experienced in this area, worth a call.

His credit worthyness will be 0 if he gets a ccj.

[Didwot]

I beg to disagree with Loosehead.
In order to make someone Bankrupt you first serve them with a statutory demand under Section 268 of the Insolvency Act.
The (alleged) debtor then has 18 days to pay up, or to make an application to the Court for the Statutory Demand to be set aside. If they only owe part of the money they should pay up what they owe, and dispute the balance.If they do nothing then 21 days after service of the statutory demand the creditor can issue a Bankruptcy Petition in the Court. It is by then too late to argue whether the money is due or not. The case will be listed for hearing and a Bankruptcy Order is almost always made. There is no need for the creditor to obtain a judgment first.
Once a Bankruptcy Order is made all of the Debtor's assets (with limited exceptions) pass automatically to his Trustee in Bankruptcy by vrtue of Section 306 of the Insolvency Act including hsi home he owns it. The Trustee then disposes of all the assets that are worth selling, pays himself, the petitioning creditors legal costs, and then the balance (if any) is shared amongst all the creditors. If your fater has no assets then he may as well do nothing. Once the Bankruptcy order is made he will cease to be liable to pay his debts, and he will be discharged from bankruptcy after a year.