A proper understanding of statutory demand time limits can be vital. Get them wrong and it can lead to bankruptcy proceedings or a winding up petition. Let our team of experts help.
The 21 day rule
A recipient of a statutory demand has 3 weeks (21 days) from the date of service to pay the debt. Failure to do so could lead to further action such as
- For a company – a winding up petition might be issued if the debt remains unpaid
- For an individual – a bankruptcy petition might be issued if the debt remains unpaid.
Disputed statutory demands – what can be done?
If a statutory demand is disputed, then the situation is generally as follows
- For individuals – they can make an application to set aside the statutory demand within 18 days of service.
- For companies – they can apply for an injunction to restrain (stop) presentation of a winding up petition, so long as this is done within the 21 days from date of service.
When does the 21 days start to run?
It is important to understand when the 21 day period starts. As a general rule, the 21 day period starts from the following:
- If served by post or DX it is deemed served on the second day after the day of despatch (or if that is not a business day, on the next business day after that day).
- If it is advertised, it is deemed served on the date the advertisement appeared.
- If it is served personally, or by fax or email or being left at a specified place before 14.30 on a business day, it is deemed served on that day.
- If it is served after 16.30 on a business day, it is deemed served the next business day.
The above rules are pursuant to the Civil Procedure Rules 6.26 which relate to deemed service of documents including a statutory demand.
Whatever your concerns regarding statutory demands, our team at Francis Wilks & Jones are here to help. Contact one of our expert friendly statutory demand lawyers now for your confidential consultation.
