The use of a statutory demand can be highly effective in recovering a debt. But care needs to be taken to get it right.
A statutory demand is a hard hitting way of recovering a debt from an individual.
Whilst great care needs to be taken to draft the statutory demand properly, an unanswered demand can then mean that the creditor can issue a bankruptcy petition against an individual or a winding up petition against a company.
It is for this reason that many individuals or companies will pay attention to a statutory demand and make payment upon service. The consequences of not dealing with it are very serious indeed – bankruptcy or liquidation.
However – statutory demands can be dangerous of not used properly. Care must be taken to ensure
- the statutory demand is properly drafted;
- the statutory demand process is properly followed;
- the debt being claim is suitable for a statutory demand. Statutory demands should only be used in certain circumstances where the debt is not one which is subject to a genuine dispute or where the debtor has a cross-claim against the creditor which would effectively extinguish the creditor’s debt; and
- the statutory demand is properly served.
Francis Wilks & Jones is the county’s leading firm of statutory demand solicitors. We are genuine experts in what we do with a combined experience of over 100 years in statutory demand claims. Contact us today.