Statutory Demand Minimum Amount
Statutory Demand Individual
If a statutory demand is served against an individual and the statutory demand debt is still not paid, then the next step which can be taken is to issue a bankruptcy petition or bankruptcy order. At present, the bankruptcy petition minimum amount is £5,000 for an individual. Therefore, creditors using statutory demands against individuals normally do so on debts over £5,000 as otherwise a statutory demand debtor who knows the rules knows that if they fail to pay a statutory demand for less than £5,000 it doesn’t matter as the creditor cannot follow through with a bankruptcy petition.
Statutory Demand Company
With respect to a company, the position is better. If a statutory demand is served against a company and the statutory demand debt is still not paid, then the next step which can be taken is to issue a winding up petition or winding up order. At present, the winding up petition minimum amount is £750 for a company.
Therefore, creditors using statutory demands against companies normally do so on debts over £750 and follow up non-payment with a winding up petition. Statutory demands are commonly used against companies to recover debts of over £750 as the statutory demand creditor knows that the non-payment of the statutory demand can then lead to the issuing of a winding up order to either wind the company up or seek to obtain payment.
In summary therefore, whilst there is no statutory demand minimum debt level, normally creditors will use them when the statutory demand levels is over £750 for a company and over £5,000 for an individual.
However, there is nothing stopping a creditor serving a statutory demand for less than £5,000 on an individual, as the threat of the statutory demand may prompt payment, especially if the debtor does not understand the bankruptcy petition minimum fee limits. Service of a statutory demand can often still lead to payment and can be far quicker than proceeding by way of a small claim case. As the costs of the statutory demand process are relatively low, it can make sense to proceed with one first to see if the debt is paid rather than proceed in the small claims court.
Contact expert statutory demand solicitors now
Please contact one of our expert statutory demand lawyers now for your consultation. At Francis Wilks & Jones, we have all the statutory demand experience needed to deal with any type of statutory demand problem. We offer fast and effect statutory demand advice, whatever your situation. Call now for a friendly consultation.
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