Proper service of a statutory demand on an individual person is vital - get it wrong and the demand can get thrown out of court.
Always comply with rule 10.2 of the Insolvency Rules 2016
When serving someone personally with a statutory demand, the creditor must comply with rule 10.2 of the Insolvency Rules 2016. This states that the creditor must “do all that is reasonable for the purpose of bringing the statutory demand to the debtor’s attention and if practicable in the particular circumstances, to cause personal service of the demand to be effected”.
Personal service is best
It is always best to have the statutory demand served on the individual personally. This removes any doubt with regards to service of the statutory demand and any allegations by the debtor that he/she was unaware of it.
What happens if the debtor is not there?
However, on occasion the process server cannot locate the individual on the first visit at the address given. In those circumstances the process server should leave behind what is known as a letter of appointment. That letter informs the debtor of a date and time when the process server will return to the address to arrange for statutory demand service. If the person is then there at that time, he/she will be personally served. If they are not then the statutory demand is served by way of substituted service.
Service by social media
It is occasionally possible to obtain court sanction for the statutory demand to be served by the use of social media. The courts have for example being prepared in certain circumstances to allow service by Twitter and Facebook in civil litigation although this is very much the exception rather than the rule.
Deliberate avoidance by the debtor
If the creditor believes that the debtor has absconded or is deliberately avoiding statutory demand service, the demand itself may be advertised if the debt arose pursuant to a judgement or court order. This is pursuant to Rule 10.2 of the Insolvency Rules 2016.
At Francis Wilks & Jones, we have access to experienced process servers to make sure that the individual is served either personally or statutory demand substituted service properly carried out. It is important that this is carried out correctly as only then will you be able to proceed with a bankruptcy petition if you so wish.