Statutory demands don't last forever after service. Unless action is taken after a set period of time - they will become redundant and you will have to start the process all over again
Individual statutory demands
If the statutory demand is against an individual, that individual has 18 days in which to apply to set aside the statutory demand failing which the creditor can issue a bankruptcy petition against the debtor.
- however, a statutory demand itself is only effective for 4 months after the date of service;
- if the creditor has not taken any action to issue a bankruptcy petition within 4 months from the date of service, a new statutory demand will need to be served.
Company statutory demands
For a company statutory demand, the payment by the debtor must be made within 21 days of the date of service.
- if the debtor disputes the statutory demand, then it must seek an injunction against the creditor within that 21 day period to stop it from issuing a winding up petition at court;
- failure to do so means that the creditor can proceed to the next stage i.e. a winding up petition.
Francis Wilks & Jones is the county’s leading firm of statutory demand solicitors. We are genuine experts in what we do with many years’ combined experience. Our knowledge of the relevant legislation combined with our day to day experience and team of experts makes us the No 1 choice for people or companies in need of advice.