If you are owed money, dealing with collection of it through the Court system can be very time consuming and frustrating.
Many creditors choose to issue a Statutory Demand because doing so is generally quicker and cheaper than instigating court proceedings, however, doing so is a potentially risky strategy and proper advice and support should be obtained before the Statutory Demand is issued.
Any debt owing must be greater than £750 and it is often the case that Statutory Demands are used for higher value or strategically more important debts. It is not recommended that Statutory Demands are used as a matter of routine.
The aim of issuing the Statutory Demand is to prompt payment from your opponent. Ultimately, if they do not pay or make an application to the Court to set the Demand aside, then they could be facing either Bankruptcy proceedings (as an individual) or a Winding Up Order (as a company).
The Statutory Demand will demand that the debtor pays the debt due in full within 21 days.
If the debtor pays following service of the Statutory Demand, then this is all well and good. If they fail to pay and set apply to the Court to set aside the Demand then you risk having a costs order made against you by the Court.
Ultimately, it may not be difficult to prove that the debt (or some part of it) is contested to allow them to have the Statutory Demand set aside and this is where the risk lies in bringing a Statutory Demand unless it is absolutely clear that the debt is undisputed and payment is being withheld.
With our Head Office based in Hull and two Consulting Offices in London and Leeds we are easily accessible for consultations. Call us on 01482 616 616 or 0800 037 1305 to book a free telephone consultation to discuss your issues and requirements.
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