Thanks go for broke, the last paragraph sums up the situation. I feel that if I get this first stat demand sorted perhaps by offering security then I am still going to have battle after battle with more in the future.
If you were made bankrupt by this creditor, and after all if they are prepared to fund the cost of that it will save you the £495 deposit and Court fee, you would generally be allowed the fist 12 months to make alternative living arrangements for your family.
If the equity is low, then you may be able to do a deal to acquire the Trustee's beneficial interest at some stage. Personally I would be careful of offering equity as security to one particular creditor, if you have others that you know you cannot pay at the same time. This could be viewed as giving one creditor preferential treatment.
Thanks Melanie, the help, support and advice on here has been fantastic I am so glad I found the site! Do you think I should respond to the claimants Solicitor just to advise again that I cannot meet the demand or should I just let them get on with it?
I have no doubt Melanie is technically right but given the circumstances you are in, ie defending a creditor's petition, I seriously wonder whether it would have any real adverse consequences.
If you were filing for your own bankruptcy, and had been seen to advantage this creditor, I think the Official Reciever would at very least want to explore your relationship with this creditor.
Other than that as Melanie suggests, if you decide that BR is a good option generally, having an awkward or aggressive creditor pay for it for you could be considered something of a result.
I would keep them in the picture, and tell them that you are unable to pay the debt and are in the process of seeking professional advice with regard to your options. It may not stop the ongoing action, but it will probably make the creditor think twice about whether they really do want to fund bankruptcy proceedings.
