One way to achieve payment of an outstanding debt is to serve a Statutory Demand.
A statutory demand is a formal request for payment. It can only be used if
- The debt is un-disputed i.e. the debtor accepts the money is due but has for some reason omitted to make payment, and
- The debt is over £750.00
If the debt is under this amount then a statutory demand cannot be issued.
The Statutory Demand requires payment, an agreement as to payment, or an application to the court to set the Statutory Demand aside within 21 days of service if served on a company or 18 days if an individual.
If no agreement is reached or payment made, then the debtor is deemed to be insolvent and the creditor can start proceedings either in bankruptcy if the debtor is an individual or, by way of a winding up petition if the debtor is a company.
For more information and initial advice please contact us.