If you are owed money, dealing with a 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, it is important to ensure that your matter is properly assessed to ensure that this is a suitable route to take. Because of the potential risk of getting it wrong, proper advice and support should be obtained before the issuance of a Statutory Demand.
Any debt owing must be greater than £750 in the case of a company but in the case of an individual, the current threshold is £5000. It is often the case that Statutory Demands are used for higher value or strategically more important debts. The Statutory Demand will demand that the debtor pays the debt due in full within 21 days, with the aim being a prompt payment from your opponent without the necessity undertake lengthy debt recovery proceedings.
A person in receipt of a Statutory Demand will realise the seriousness of the situation and is more likely to pay as ultimately, if they do not pay or make an application to the Court to set the Demand aside, then they could face either Bankruptcy proceedings (as an individual) or a Winding Up Order (as a company).
It is not recommended that Statutory Demands are used as a matter of routine. However, it can prove an extremely fast and effective tool for debt recovery, if it is clear that the debt is undisputed and payment is being withheld unjustly.
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.
Would you like us to contact you to talk more about what we can offer you and your business? Please fill in your details below and an advisor will contact you within 24hours.