A statutory demand notice is another description for a statutory demand or “stat demand”. It is a type of form completed by a creditor and served against the debtor in respect of repayment of an undisputed debt.
Failure to comply – companies
Failure to comply – individuals
Failure to respond to a statutory demand notice by an individual can lead to bankruptcy proceedings if the debt is over £5,000.00. It is always very important not to ignore a statutory demand notice.
Obligations for creditors – complete the demand properly
Having said that, it is also very important to properly deal with a statutory demand if you are a creditor. Failure to complete the statutory demand notice properly or indeed, properly serve the statutory demand notice can lead to it being ineffective and struck out by the court. This can lead to big costs consequences for the creditor.