A Statutory Demand is the first part of the bankruptcy or company winding up process. It is a requirement that they are served prior to the Bankruptcy Petition or Winding up Petition. It is important only to use a Statutory Demand when the debt is un-disputed. Courts frown upon a Statutory Demand being used when clearly the debtor has reasons for disputing the amount owed. If it is a disputed situation alternative collection methods can be employed.
Once the Statutory Demand has run its course of 21 days and no payment has been forth coming, a Bankruptcy Petition or Winding Up Petition for companies can be presented.
In the case of an individual it is a Bankruptcy Petition and for a company a Winding Up Petition. This is an extremely quick and effective method of bringing a debt matter to a conclusion. All Bankruptcy related documents are served on the individual and companies with the assistance of a Process Server. A Process Server will personally serve the documents and following ‘good service’ confirm and sign an affidavit giving time and date details when service was made. These details are required for the court process.
To use a Statutory Demand the amount owed must be in excess of £750.00 for a company and £5000.00 for an individual and undisputed.
If you think you have a situation that requires quick and effective recovery action and the matter is not disputed then this method of recovery may well be the tool to use.
Call us on: 01386 584005 e: collections@debtcollection.co.uk