What is a Statutory Demand?
A Statutory Demand is a formal process under the Insolvency Act 1986 for the payment or other satisfaction of a debt that is owed by a debtor to a creditor. The Statutory Demand provide the debtor with a limited amount of time (18 days) to either pay or satisfy the debt or have it set aside by the court.
What to do next?
You must take action quickly if you dispute the debt in part or in full or, that you, accept the debt is due but cannot afford to pay it immediately. You must not ignore the Statutory Demand or take your time about dealing with it.
Failure to deal with the Statutory Demand
Should you fail to deal with a Statutory Demand within the allowed 18 days your creditor may immediately issue a Winding up Petition against your company (or Bankruptcy Petition being an individual). This would lead to the company’s bank accounts (or personal bank accounts in Bankruptcy proceedings) being frozen prior the court hearing date due to be held to commit your company into compulsory liquidation (or you being made Bankrupt if an individual).
How we can help…
We will make direct representation to your creditor or creditor’s solicitor and seek the immediate withdrawal of the Statutory Demand. It may take some time to reach agreement with your creditor and this will be largely dependent upon how we decide to proceed, having considered your company’s (or personal) current circumstance.
In some instances we may have to apply to the court to have the Statutory Demand set aside or your have your creditor restrained by court order from proceeding further with insolvency proceedings should your creditor prove uncooperative.
Provided early action is taken there are also other remedies for successfully dealing with a Statutory Demand. Don’t get caught out by missing the opportunities to successfully deal with your Statutory Demand. Let us help you, through what may be, challenging times. This is what we do best.
We are confident our experience will bring you relief from your current situation. Contact us today for free advice on 0207 504 1300