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When should I, as business operator, financial controller or finance director use statutory demands?
- Do you have company debtors that owe you £750 or more?
- Do you have personal debtors that owe you £5,000 or more?
- Are you owed a fixed sum of money?
- Is the debt unsecured?
- Is the debt undisputed?
If you have answered yes to the above, your alternative to using the Courts (and issuing a claim) is issuing a Statutory Demand. It can be quicker, more effective and less time consuming.
- Deal with preparation and service of the statutory demand on fixed fees
- We will collect your costs of the process from the debtor
- There is no court fee to pay
- Payment is invariably usually within 25 days of the demand being received
A statutory demand is a formal, written demand for payment of a debt which incorporates the threat of bankruptcy or winding-up of a company. If the debt is not paid within 21 days of receiving the demand, that constitutes sufficient evidence that the debtor is unable to pay which allows a creditor to then apply to court to have the debtor made bankrupt or be wound up.
The are strict formalities which need to be complied with otherwise the debtor can apply to court to have the demand set aside, so care must be taken in the preparation and service of any statutory demand.
Take advice from Napthens Debt Recovery to determine if a statutory demand could be the best way for you to proceed.
This is a method which has proved to be very successful in reducing debtor ledgers for our client companies – try it and judge for yourself.