Stat demand received personally for a company debt

[BlackEyeMike]

Hi

Could really do with some advice.

I had to put a company into liquidation and one of the creditors has taken it upon himself to send me a stat demand in a personal capacity for a ltd company debt.

The debt is undoubtably a company one. It was incurred by the business and previous invoices were received and paid for through the ltd company bank account.

The creditor believes they have a case because the ltd business used a trading style e.g. Bobs Builders Ltd t/as Best Bricks.

All company letterhead carried the ltd company name and the registration details. The bank account is in the ltd company name. All details are registered at companies house in the ltd company.

Because my email signature only had 'Best Bricks', he believes the debt was incurred in a personal, sole trader capacity.

I've applied to have the stat demand set aside and I have a hearing at the end of April to decide the outcome but could do with a steer beforehand.

Also, the creditor has been contacting previous clients - I guess I have to accept that - but he's also revealing details about the proceedings before they've been heard and also about my personal financial and medical details. Surely he's not allowed to do that?

Some advice would be appreciated

[EXC]

Re: Stat demand received personally for a company debt

Who is the creditor? A supplier?

And how much is the stat demand for?

[BlackEyeMike]

Re: Stat demand received personally for a company debt

Who is the creditor? A supplier?

And how much is the stat demand for?

Hi

The creditor is a supplier to the ltd co.

Stat demand for £5k

[EXC]

Re: Stat demand received personally for a company debt

On the face of it you have a strong case for set aside.

Did you receive any demands from the claimant for you to settle the 'debt' personally prior to getting the stat demand and if so how did you respond and do you have any of it in writing?

[enquirer]

Re: Stat demand received personally for a company debt

As EXC points out, you have good reason to be confident that an application for set aside will be successful.

His contacting former clients is not unlawful (there are occasions when it is entirely justified). However, what he says about you when he does so, may be. See if you can get feedback from them.

As to him splashing your personal financial and medical details about, if this data was confidential, then this will amount to a breach of the Data Protection Act 1998. Did he threaten to do this beforehand, in the hope that it would induce you to pay? If he did, then that might amount to blackmail.

[BlackEyeMike]

Re: Stat demand received personally for a company debt

On the face of it you have a strong case for set aside.

Did you receive any demands from the claimant for you to settle the 'debt' personally prior to getting the stat demand and if so how did you respond and do you have any of it in writing?

Hi,

I had no requests to settle personally - no directors guarantee was provided.

First i knew he was chasing me personally was on receipt of the stat demand - which was sent to the ltd company address.

No attempt to go through the court - straight to stat demand.

[BlackEyeMike]

Re: Stat demand received personally for a company debt

As EXC points out, you have good reason to be confident that an application for set aside will be successful.

His contacting former clients is not unlawful (there are occasions when it is entirely justified). However, what he says about you when he does so, may be. See if you can get feedback from them.

As to him splashing your personal financial and medical details about, if this data was confidential, then this will amount to a breach of the Data Protection Act 1998. Did he threaten to do this beforehand, in the hope that it would induce you to pay? If he did, then that might amount to blackmail.

Hi,

He basically emailed a client with a full brief of the stat demand proceedings before the hearing had taken place. Included within that is a breakdown of my personal financial circumstances plus details of a medical procedure I had to undergo and move the orginal hearing date.

My client has sent me the email thread so I have it all in writing.

[BlackEyeMike]

Re: Stat demand received personally for a company debt

Really appreciate the prompt response from both of the above
Thanks

[BlackEyeMike]

Re: Stat demand received personally for a company debt

Hi EXC & Enquirer,
Just to give you an update on the progress of this.
My application to set the demand aside was dismissed by the judge.
His opinion was that because the ltd company name was not contained in my email communication, it was not made clear who the supplier was dealing with.
I've since had to search for any communication from anyone in the organisation containing the Ltd company details.
I've managed to do that - which I will present at the petition if and when it is raised.
Worth pointing out to users that if they use a trading style and the ltd company details are not on the communication they send out, they leave themselves open to being pursued on a personal basis.
I'll update you on the outcome of the petition if it is presented
Thanks for your input.

[Stacy]

Re: Stat demand received personally for a company debt

Can second this. Have been present in a HC case where the claimant argued that a personal email was used suggesting personal liability, despite a later company to company invoice and company to company payment.

[BlackEyeMike]

Re: Stat demand received personally for a company debt

Can second this. Have been present in a HC case where the claimant argued that a personal email was used suggesting personal liability, despite a later company to company invoice and company to company payment.

Hi Stacy, and other contributors to this thread...

Just to give you an update on the outcome of this case.

Unfortunately for me, not only was the set aside dismissed, the petition was granted and I was made bankrupt.

This was despite providing the court with proof that the Ltd company existed, and had paid for previous work from the supplier.

The court held that the Companies Act 1986 required ALL written communication to provide the Ltd company name, registered address and company number. The trading address and contact details are not sufficient.

Ordinarily this is not an issue, but where a trading style is involved, unless you are very careful you leave yourself open to being pursued on a personal basis.

In this case, none of the email communication contained the registered address or company number, thus the petitioner was able to argue that the trading style was actually a non-ltd business operated by the director.

I've seen and continue to see a high volume of email traffic with no company signature giving the details specified above. The lesson for me is that this information is critical when using a trading style.

Just as an aside to this - don't feel too bad for me. The bankruptcy has actually turned out to be the best course of action. So the petitioner has actually saved me the bankruptcy fee! Every cloud...

In any case, thanks for your input - I hope my feedback will prove useful to someone.

Regards

Mike