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Statutory demand letter of response

If the statutory demand debt is disputed, then a detailed statutory demand letter of response needs to be sent urgently to the statutory demand creditor. Legal assistance should be taken to help with this letter. The letter should:

  1. Make clear the grounds on which the statutory demand debt is disputed. By doing this, the recipient of the statutory demand (company or individual) has the best chance of persuading the statutory demand creditor not to take any further action. If it is clear to the statutory demand creditor that the statutory demand is subject to a genuine and substantial debt over the entirety of the amount claimed, then the statutory demand creditor should agree to statutory demand withdrawal – avoiding a winding up petition against the company or a bankruptcy petition against the individual. It doesn’t mean that the statutory demand creditor cannot then commence a claim in the normal county court or high court but that is something which can be defended in the ordinary way. But it does avoid a potential winding up petition or bankruptcy petition.
  2. The letter should also seek a written undertaking from the statutory demand creditor not to present a winding up petition (if a company) or a bankruptcy petition (if an individual). This then gives breathing space for the parties to review the matter without the threat of either a winding up petition (company) or a bankruptcy petition (individual).
  3. If the statutory demand creditor refuses to agree the undertaking or the complete withdrawal of the statutory demand, then the options are
  • a. For a company – seek an injunction to stop a winding up petition
  • b. For an individual – apply to set the statutory demand aside. Both of these remedies are covered in other articles on our website.

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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