Statutory Demand
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Statutory Demand
A Statutory Demand is a formal document which can be issued if you have failed to make payments to a debt. This is the first step of the legal process a creditor may use to make you bankrupt to recover their money.
You can petition for bankruptcy, known as a debtor’s petition
If you do not repay your debts on time, your creditor may use the power of the courts to get you to settle the debt or start making reasonable payments.
A creditor has the option to try to bankrupt you, with a statutory demand being the first step of that process.
What to do if you have received a Statutory Demand
Within 18 days of receiving a Statutory Demand, you may apply to your local County Court to set it aside under the following circumstances:
- The amount of money owed is in dispute
- The debt is not payable now.
- You are prepared to secure the debt to the creditors satisfaction under the creditors stated terms.
- The amount owed is less than £5000.
- The statutory demand has been issued in error or does not comply with rules.
- You can and are about to repay the debt.
- You have a counterclaim of more than the money owed.
Ignoring or Failing to comply to a Statutory Demand entitles the creditor to present a petition for bankruptcy 21 days from the date of issue.
The demand is normally issued to you in person by the creditor. It may be posted provided there is proof that you are aware of the demand.
If you are not contactable, them the demand can be issue by advertisement, however the creditor requires a court order to allow this.
Failure to comply to a statutory demand is seen as proof you are not able to repay the debt, and as such, the creditor is entitled to serve a bankruptcy petition to the court.
What To Do Next
If you have received a Statutory Demand, or have been threatened with one, then you need to get professional advice as soon as possible.
Our panel of specialists can quickly advise you of your options if you have received a statutory demand or are considering going bankrupt.
Simply call the team on 0800 088 2208. Alternatively take the online bankruptcy test and find your best solution.
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