We are often asked whether the use of a statutory demand stops other types of legal action being taken. Our super team can help on this and all other statutory demand enquiries - contact us today for help
Normally the expiry if the time limits of a statutory demand leads to the presentation of a
- bankruptcy petition against an individual; or
- winding-up petition against a company.
However, there is no obligation on the creditor to do this. Often a statutory demand is used to “shake the tree” and try and get quick payment. However, moving to a bankruptcy petition or winding up petition involves high court issue fees (£1,270 and £1,880 respectively) and this can put creditors off going down that route.
- county court issue fees are far lower and a creditor might simply want to try and secure a Judgment against the company or individual which in turns opens up other recovery options – the use of the High Court Enforcement Office, attachment of earnings order and charging orders against property.
- however, if a creditor decides that it does not wish to proceed with the statutory demand, it might consider making it clear that the demand is withdrawn – as there is an outside risk that the may apply to set aside the statutory demand (if an individual), or seek an injunction to restrain presentation of a winding-up petition (if a company). This could lead to unnecessary costs being incurred – one ones which the creditor does not want to be liable for.
Francis Wilks & Jones is the county’s leading firm of statutory demand solicitors. We are genuine experts in what we do with huge experience in statutory demand claims. Call now for a friendly statutory demand consultation.
