Statutory Demands
In our experience this is a very effective
debt recovery tool for any undisputed debts over £750
as it puts your debtor on notice in no uncertain terms of
how seriously you view their failure to pay.
A Statutory Demand is not suitable if there
is any element of dispute to the debt.
You can issue a Statutory Demand even if
you do not have a Judgment against your debtor.
If an individual owes you a debt of more
than £750 then ultimately you may petition for their
bankruptcy. If a Company owes a debt of more than £750
then you may apply for a Winding Up Order to be made against
it.
In either event, it is a prerequisite under
the Insolvency Act 1986 that a Statutory Demand is personally
served on either the individual or at the registered office
of the business that owes you money.
Our standard fee for the preparation and
all administration relating to a Statutory Demand is just
£75 plus VAT.
In exceptional circumstances, where a Company owes you more
than £750 we can dispense with the need to serve a Statutory
Demand under our "Mission
Critical" service that will lead to the immediate
filing of a Winding Up Petition. Once the bankers of your
debtor become aware of the petition that you have filed following
our statutory advertising of the petition, they will invariably
freeze the debtor’s bank accounts, until the final outcome
of the petition is known. Other creditors may also withdraw
any credit facilities to your debtor as a direct result of
your petition.
Given the severity of this course of action
and the implications for your debtor, you should be aware
that if your petition does not succeed, for whatever reason,
then you could be ordered by the Court to pay a substantial
sum in costs and/or damages.
This service is only suitable in exceptional
cases of high monetary value and when you are certain that
a company cannot pay its debts. You will need to contact us
to discuss each case on its own merits.
The debtor has to be personally served with
the Statutory Demand given the significant implications of
failing to deal with the demand within the very strict timescales
set out in the Insolvency Act 1986.
Wherever the demand needs to be served in
England & Wales, we can arrange for personal service to
be effected together with a sworn affidavit of service to
confirm this, as required by law.
Typically the average cost of personal service
by a process server is £65.
Once the demand has been served on the debtor,
they then have 21 days
in which to pay you, or secure the debt, failing which you
can then petition for their bankruptcy or winding up.
The implications of bankruptcy/winding up
are very serious and unless the debtor was already contemplating
that course of action themselves, then in most cases debtors
will find the means to settle your debt in order to stop you
petitioning for either their bankruptcy or the winding up
of their company.
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