Can I ignore a statutory demand?

Ignoring a statutory demand can have very dramatic consequences for an individual or a company.

Individuals

If an individual ignores a statutory demand and fails to either pay the debt, negotiate a settlement or set it aside within the 18 day prescribed period, then the creditor is at liberty to issue a bankruptcy petition against the individual. Bankruptcy petitions are very serious indeed and if the debt is still not paid, the individual will be made bankrupt. All of his / her assets will then belong to a Trustee in Bankruptcy (an officer of the State) whose job it is to then sell all of those assets and distribute any payments to various creditors. Bankruptcy is something which really should be avoided at all costs.

Companies

If a statutory demand is received by a company, then the company should again seek to either pay it, negotiate settlement or apply for an injunction if the statutory demand is disputed within 21 days from the date of service.

Failure to deal with a statutory demand by a company will then lead to a winding up petition being issued against the company. These are very serious indeed. It can dramatically affect a company’s credit rating, the bank account can be frozen, suppliers will stop supplying goods or services if it becomes public knowledge and ultimately, if the debt is not paid the company is wound up and put into insolvency.

Following that, a liquidator is appointed and may investigate the affairs of the company including the directors personally.

Therefore, if you ever receive a statutory demand it is best not to ignore it. Even if the situation appears very bleak, there are always things which can be done to help you.

Contact expert statutory demand solicitors now

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. Our knowledge of the statutory demands is unsurpassed and whatever your statutory demand enquiry, we can assist. Call now for a friendly statutory demand consultation.

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