Our team have issued 1000's of statutory demands and petitions for our clients - helping them chase debtors and recover millions of pounds of payments. But they are not without risk and should only be used in the right circumstances. Avoid simple mistakes and maximise your chances of recovery. Call our team today and we can help.
Normally a statutory demand is a pre-cursor to a winding up petition when used against a company. Whilst a statutory demand is not a necessity prior to issuing a winding up petition, it can be important in certain circumstances.
- whilst it is possible to proceed directly with a winding up petition against a company in circumstances where a debt remains unpaid, it can in certain circumstances be sensible to serve a statutory demand first;
- by doing this, it firstly avoids the need to prove, if required, that the debtor company is insolvent;
- an unanswered statutory demand means that the creditor can deem the debtor company insolvent.
- statutory demand costs do not involve a court issue fee and simply involve solicitors’ costs for completing them together with the process server fee for issue;
- this avoids potentially an expensive winding up petition fee at court for the issuing of the winding up petition;
- if payment is made on the back of a statutory demand, then it is often a cheaper up front way of recovering the debt, although technically, the creditor may have issues seeking to recover legal costs against the debtor if the statutory demand debt is paid;
- often it is a question of reviewing the underlying documentation and being advised as to the most appropriate course of action i.e. a statutory demand or a winding up petition in respect of a company.
If a statutory demand is used first and the debt is not paid after three weeks, then it is then possible on debts over £10,000 for the creditor to proceed with a winding up petition. In addition, there are new requirements to be satisfied before a winding up petition can be presented which will continue to be in force until 31 March 2022
Please contact one of our friendly solicitors now for your consultation. At Francis Wilks & Jones, we have all the experience needed to deal with any type of statutory demand problem.