STATUTORY DEMANDS AND INSOLVENCY
Statutory Demand
As an alternative to Court action, in the case of an undisputed debt, it may be more appropriate to proceed by way of Statutory Demand, which is a prelude to bankrupting an individual debtor or liquidating a Company debtor.
We will draw up the Statutory Demand for the debt and arrange for it to be personally served upon the debtor, at a fixed cost of £250 plus VAT.
1. Time Limits (Individuals)
An individual debtor has:
- 18 days in which to apply to a County Court with Bankruptcy Jurisdiction to set the Statutory Demand aside; or
- 21 days to pay the Statutory Demand
2. Time Limits (Companies)
A Company has 21 days in which to either settle the debt in full or apply to Court to prevent the advertising of the winding up Petition.
3. Default
If the debtor fails to comply with the above time limits it will then be open to you to file for the individual's bankruptcy or the company's liquidation.