We helped a private client successfully defend an urgent statutory demand set aside application before recovering the full £15,000 debt, £10,000 in interest and the legal costs associated with the dispute.
Why the client needed our help
Our client had entered into a loan agreement with another private individual and was owed £15,000.
We were instructed to respond to an application to set aside the statutory demand shortly before the listed hearing. The timetable was particularly challenging because only around one week’s notice of the hearing had been provided, and the sealed application notice was received approximately 24 to 48 hours before the hearing.
Our client needed urgent representation to defend the application and protect their ability to pursue the outstanding debt.
How we helped
We acted quickly to prepare and file a witness statement in response to the application. We also identified and instructed suitable counsel to attend the hearing at short notice.
The application was successfully defended. The court also ordered that our client could present a bankruptcy petition after a specified date (in the event of continued non payment of the debt) and made a costs award in the client’s favour.
Following the hearing, we approached the debtor to explore settlement. When the debtor did not engage meaningfully, we advised our client to send a draft bankruptcy petition.
The draft petition prompted the debtor to put forward reasonable proposals. We then conducted settlement discussions and reached an agreement before it became necessary to issue the bankruptcy petition.
The outcome
Our client recovered:
- £15,000 in principal debt;
- £10,000 in interest;
- £2,500 in legal costs previously incurred with another firm;
- £3,900 under the court costs order.
And in addition to this – all of our own legal costs in full. Meaning the legal claim effectively cost him nothing at all.
The matter was resolved without the need to issue a bankruptcy petition, avoiding further court proceedings while still securing a complete financial recovery for our client.
