What is a Statutory Demand? debt-simple

Statutory Demand

What is a Statutory Demand?

‘A formal notice requiring payment of a debt within 21 days, in default of which bankruptcy or liquidation proceedings may be commenced without further notice (Cannot be used where the debt is disputed).’

Statutory Demand Explained

Legal Document

A Statutory Demand is a formal notice requiring you to pay off an outstanding debt either by instalments or a lump sum or to secure it against a property.

Bankruptcy

If you do not comply with the formal notice, your creditor may be able to apply for bankruptcy against you within 21 days.

Is it a tactic to frighten you?

Some creditors may issue you with a Statutory Demand notice to frighten you into contacting them and making payments. This still shouldn’t be taken lightly and you must seek expert advice in order to resolve the situation, particularly if the notice is sent from the Inland Revenue or HM Customs & Excise.

Can I avoid a Statutory Demand?

You can apply to your Local County Court within 18 days to ‘set aside’ the Statutory Demand, if you feel one of the options below applies to your case.

debt is less than £750
there is a dispute regarding the amount owed
you can pay the debt in full
there is a counterclaim of more than the amount owed
demand is issued in error

If you are unable to make such an application within 18 days, then you must comply with the Statutory Demand to prevent further action. Contact one of our expert advisors if you feel you need help negotiating with your creditors and would like to come to a repayment proposal with them.