Statutory demand security held

If security is held by the creditor then, as part of preparing the statutory demand for either an individual or company, it is important that the full amount of the debt claimed in the statutory demand is stated less the value that the creditor attributes to the security it holds. This must be done to comply with Rule 10.1(9)(b) of the Insolvency Rules 2016(below).

This relates to any security that the creditor holds in respect of the property of the debtor and does not include security held over any third party.

It is not always fatal to the prospects of the statutory demand if the security is not referred to but it is always wise to make sure that any security held (such as a charge over the debtor’s property) is set out in the statutory demand.

If later on, the statutory demand is not paid and a bankruptcy petition is issued, then the bankruptcy petition itself can be issued based on the debt being secured but only if:

  1. The bankruptcy petition contains a statement by the secured creditor that he is willing in the event of a bankruptcy order being made to give up his security.
  2. The petition is actually only being issued for the portion of the debt which is not subject to the security.

For all your requirements relating to statutory demands, call one of our expert statutory demand lawyers now and we can assist you.

Insolvency Rule 10.1(9)

If the creditor holds any security in respect of the debt, the full amount of the debt shall be specified, but—

(a)there shall in the demand be specified the nature of the security, and the value which the creditor puts upon it as at the date of the demand, and

(b)the amount of which payment is claimed by the demand shall be the full amount of the debt, less the amount specified as the value of the security.

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.

 

 

Page # of 48