Statutory Demands

OUR EXPERTISE
Our expert team of lawyers can guide you in relation to all matters relating to statutory demands and we welcome new enquiries. We have significant experience in both presenting and defending statutory demands, for clients.

Statutory Demand Lawyers

As we act for clients in both preparing and serving statutory demands and assisting those who have been served with one, we are well placed to advise clients on the merits of either serving a statutory demand or preparing a robust defence to one that has been received. Whatever your situation, we are here to assist both individuals and companies, so please contact one of our team of lawyers for an initial consultation.

Got a question?

Can't find what you need? Get in touch with our experience team, who are happy to answer any questions you have. Call us on 0333 370 4333.

What is a Statutory Demand?

A statutory demand is a formal demand, set out in a prescribed form, for the repayment of an undisputed debt.

It can only be used in circumstances where the debt is undisputed and is usually presented against debtors who have failed to provide a genuine reason as to why the liability cannot be paid.

What are the types of Statutory Demands?

There are two types of statutory demand:

  • Individual Statutory Demand

Usually served where the debt is £5,000 or more to enable the subsequent service of a bankruptcy petition.

  • Company Statutory Demand

Usually served where the debt is £750 or more to enable the subsequent service of a winding up petition.

Why serve a Statutory Demand?

A statutory demand is a powerful tool as, failure to comply with its requirements (by neither paying the debt nor applying to have the statutory demand set aside), allows the creditor serving it to petition for the bankruptcy of an individual (if the debt is £5,000 or more) or the winding up of a company (if the debt is £750 or more).

Advantages:

  • Serious consequences – the recipient of a statutory demand should take it very seriously
  • Speed – there are strict time limits for the debtor to respond to a statutory demand failing which the creditor can apply for a bankruptcy petition or winding-up petition
  • Amount – VAT and interest to date can be included in a statutory demand. Future interest cannot be included
  • Cost effective – there are no court fees to pay when proceeding by way of a statutory demand
  • Proof of service – a Process Server is usually instructed to personally serve the statutory demand on the debtor and provide a witness statement confirming such service. This avoids any dispute regarding the receipt of documents by the debtor

How can a Statutory Demand be set aside?

If the debt is genuinely disputed, the debtor can apply to set aside the statutory demand.

The creditor can either agree to set aside the statutory demand or oppose such an application.

If the creditor opposes the application and loses, there is likely to be a costs order against the creditor.

Conversely, if a debtor seeks to set aside the statutory demand and loses, costs will usually be awarded against the debtor, thereby increasing the debt owed to the creditor.

As a result, due to the likely adverse costs consequences of failure for either scenario, careful consideration and expert legal advice should be sought before:

  • The creditor initially applies for a statutory demand
  • The debtor applies to set aside a statutory demand, or
  • The creditor opposes the debtor’s application to set aside a statutory demand

Contact Kangs

The expert lawyers at Kangs are available to assist you. We can arrange initial consultations in person, by video call or telephone.

Please contact one of our experts listed below or contact us at:

E: info@kangssolicitors.co.uk

T: 0333 370 4333

 

Testimonials

The quality of the work and advice is outstanding. They provide a real cradle-to-grave service and they make sure their client’s case is well fought.
THE LEGAL 500
An acute attention to detail and a tenacity that clients really rate are features of this firm
THE LEGAL 500
The team has substantial expertise in multi-jurisdictional financial regulatory investigations.
THE LEGAL 500
The lawyers are known for providing a very personal service from specialist and experienced Partners.
THE LEGAL 500
It has very bright individuals at all levels who know the system inside out.
THE LEGAL 500
Superior firm with that rare quality of being client centred and commercial at the same time and without detriment to either.
THE LEGAL 500
Particularly active in high value financial fraud cases.
THE LEGAL 500
The team is intelligent, hardworking and determined to do a professional job.
THE LEGAL 500
Insolvency, Tax & HMRC
A Pre-pack administration is an insolvency procedure under which an insolvent company sells its assets either to a third-party buyer or existing directors of that business through a new company. The sale of a company’s assets is arranged prior to the administration and completes shortly after the appointment of the administrator is confirmed. The procedure […]
27/02/24
Insolvency
A Personal Guarantee is given by an individual, the Guarantor, for the benefit of a third party, whichmay be an individual or corporate body, as security to a creditor, such as a bank or supplier ofmaterials, to ensure that in the event of the third party defaulting in payment, the Guarantorbecomes responsible for discharging the […]
08/11/23
Director Disqualification, Insolvency
Whilst the Order or Undertaking will not prevent an individual from being employed by a company, (save in very rare exceptions where court permission has been granted), the disqualified director will not be able to: Any breach of a Directors Disqualification Order, or a Disqualification Undertaking, in appropriate cases, could be punished by way of […]
06/10/23

Get in touch

Need legal assistance? Contact our experienced team for prompt and professional support.
Your privacy is important to us and all details you share will be kept confidential.