Need to recover money?
- Are you owed money by an individual or company?
- Is the debt undisputed?
- Does the debt exceed £750.00 (for a company) or £5,000.00 (for an individual)?
If the answers to the above questions are ‘yes’, have you considered serving a Statutory Demand on the debtor?
Complete the enquiry form to get in contact with us today.
What is a Statutory Demand?
In simple terms, a statutory demand is a formal, written request for payment of a debt. If a company or individual receives a statutory demand they then have 21 days, either to pay the amount owed, agree terms for repaying it or challenge it.
Statutory demands should never be ignored as, in a worst case scenario, it may result in bankruptcy for an individual or in a company being wound up. There are certain circumstances where a statutory demand would not be the best way to recover a debt such as if a debt is disputed or if the debt is over six years old.
Whilst serving a statutory demand is only currently possible in limited circumstances until 30th September, this is still a valid option to consider when trying to reclaim monies owed to you.
Statutory demands can be:
- Swift– the debtor has 21 days from the date of service of the Statutory Demand to pay the debt;
- Cost-Effective– a Statutory Demand is an “out of Court” process, so no Court fee is incurred. Other than the fees for a Process Server to serve the Statutory Demand (only if the debtor is an individual), the only costs would be ours to prepare the document for you and serve it;
- Potent– the threat to a debtor is significant: if the debt is not paid, or the Statutory Demand challenged, within 21 days of being served with the Statutory Demand, you would be entitled to present a Winding up Petition (of a company) or Petition for Bankruptcy (of an individual)
Our litigation solicitors are experts in serving Statutory Demands on both companies and individuals and are well-versed in responding to any points of dispute that are raised by a debtor after they have been served. You will receive pragmatic and pro-active advice at all stages. Start to instruct us now so that we can undertake an initial assessment of your case to decide whether it would be appropriate for you to serve a Statutory Demand in these circumstances.