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 you 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 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
Speak our expert debt recovery solicitor who will provide you with a fast and accurate assessment of your case. Call us on 08456 808 251 or complete the Contact Form or request for a call back at a time convenient for you.