Statutory demand procedure
It is obviously vital to first ensure that there is a debt due and owing from the debtor individual or company. The validity of that debt is important to establish. A statutory demand should only ever be used in circumstances where the debt is undisputed.
The statutory demand form itself then needs to be completed. There are different statutory demand forms for an individual and a company and it is important that the correct statutory demand form is completed and completed properly. Failure to do so, may lead to issues over the statutory demand validity.
Once the statutory demand is properly completed, it needs to be signed by the creditor and/or its legal advisers.
The statutory demand then needs to be served properly. We would always recommend the use of a process server to serve the statutory demand to ensure adherence to this part of the statutory demand procedure. Proper personal service of the statutory demand on either a statutory demand individual or a statutory demand company is always recommended.
Once service has been properly effected, the 21 day statutory demand period starts to run. Much will depend upon the response of the debtor at this stage but ordinarily one of the following will happen:
- They will ask to make payment of the statutory demand debt. This is the preferred choice and following payment, the statutory demand simply falls away.
- They will offer part payment of the statutory demand debt. Often an instalment basis can be agreed for statutory demand repayment and an agreement can be reached effectively putting the statutory demand on hold until payment is made of the entire statutory demand balance.
- No payment is made. If this is the case then the creditor can proceed with a winding up petition against the company or a bankruptcy petition against an individual.
Contact expert statutory demand solicitors now
Our expert team of statutory demand solicitors at Francis Wilks & Jones are here to help you with your statutory demand questions. Our knowledge of stat demands and practical daily experience means that we can assist whatever the nature of your statutory demand claim.
Contact one of our expert friendly statutory demand lawyers now for your confidential consultation.
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