Some creditors do serve a statutory demand before proceeding with a winding up petition. But it isn't essential to do this. But it is riskier as the debtor can allege the debt is disputed. Whether you are a creditor or debtor in this situation - our team can help. Call us today
A winding up petition after a statutory demand is a common occurrence. Often, a creditor will firstly serve on a company a statutory demand to try and recover its debt.
- if the debt is not paid within 21 days, the debt can be deemed “undisputed” and as such, a creditor can proceed with a winding up petition;
- the creditor can do so without risk of the winding up petition being set aside or struck out by the court on the grounds that it is disputed;
Many creditors proceed with a statutory demand first before issuing a winding up petition to avoid the risk of a dispute arising. But it is not always the case that this is done. Some petitioning creditors simply rely on an unanswered demand letter to then issue a winding up petition. They miss out entirely the statutory demand process.
- Our team can advise you on the benefits and dangers of not serving a statutory demand first and proceeding straight to a winding up order.
- Our team can advise you on the best options to collect your debt.
- We can also help explain any restrictions in place due to changes in legislation arising out of the Covid pandemic.
If you have a winding petition question we are the firm to help. We provide quick, cost effective and commercial advice. Don’t delay – let us help you with your winding up petition enquiry.
