Before starting off the statutory demand process - make sure you avoid common mistakes. Our brilliant team can guide you through and make sure you maximise your chances of success
Be sure to understand the process before starting off
There are key steps to follow or understand if you are to successfully follow the statutory demand process
- 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;
- choose the right form of statutory demand. 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, make sure it is signed properly;
- make sure it is served properly. All statutory demands must be served in accordance with the rules. 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.
What to do once the statutory demand is served
Once service has been properly carried out, 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 then 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.
Our expert team of statutory demand solicitors are here to help you whatever your enquiry. Contact us today for some friendly assistance.