Lawyers for Serving Company Statutory Demands

Our dedicated Company Statutory Demand solicitors are highly experienced in reaching a full debt settlement quickly and efficiently without the need to involve the Courts. We understand the frustration that comes with being owed money, and that’s why we are on hand to help you gain back what is rightfully yours.

Whether you’re a large corporation or a small enterprise, our team offers practical solutions for debt recovery through Company Statutory Demands. While many cases are relatively straightforward, we’re equipped to handle both simple and more complex situations. Our expertise ensures the process is executed correctly, from filling out the form to proper service, allowing you to focus on running your business. We’re here to guide you through each step, especially if complications arise, and to advise on next actions should the demand go unanswered.

There are many considerations when dealing with statutory demands. Our team has a thorough understanding of the process, including how they must be served and potential responses from debtors. This allows us to act swiftly and efficiently to recover your debt.

For high-quality and cost-effective legal advice, get in touch with one of our experts today, and we can take the first steps in your debt collection.

What is a Company Statutory Demand?

A Company Statutory Demand is a final request of payment from the debtor, where the amount owed is at least £750, the debt is undisputed, and it has not yet been paid. Under Section 123 of the Insolvency Act 1986, the company has up to 21 days to respond to this, where they can either:

• Pay the debt in full.
• Negotiate a settlement with the creditor.
• Dispute the debt, however the debtor would need to prove that there are valid grounds to do so and would need to apply to the court for an injunction before this time expires.

To ensure a fast resolution is reached, we recommend reaching out to one of our expert solicitors, who can guide you on the best approach to ensure that your debt is recovered swiftly.

Who can I serve a Company Statutory Demand to?

There are numerous commercial entities that you can issue a Statutory Demand to. By law, the debtor must meet one of the following criteria:

• A company that is registered in England or Wales
• A company where their main business is through England or Wales.
• A company which is unregistered, meaning that it has not been formed or registered under the Companies Act 2006 in the United Kingdom.

It may be possible to take action against a foreign company, but you would need to prove that its main interests are based in England or Wales, which can be complex.

Our efficient team of debt recovery solicitors are on hand to help with these matters, making the process seamless and stress-free, so get in touch today for tailored and professional advice.

How do you serve a Company Statutory Demand?

To issue a statutory demand, the creditor must complete one of four forms. Form SD 1 is specifically for statutory demands served on companies, whilst Form SD 2 is usually filled in when the debt exceeds £5000 against an individual, and when bankruptcy is threatened if the debtor fails to pay. Form SD 3 applies when there are debts payable in the future and it falls under Section 268(1) of the Insolvency Act. The fourth form is used when there is a court order for an unpaid debt of £5000 or more against an individual.

The law states that you must make the business aware that the statutory demand has been issued. This means that you should deliver the statutory demand to the individual who owes the debt, trying all addresses that are known. If the debtor is a limited company, this should be left at the company’s registered office or be taken to their director or manager. You are only permitted to post the letter through a letterbox if it is impossible to deliver in-person.

It is important that these steps are followed to avoid excess costs that could delay debt payment and have severe financial implications for you as the creditor. Seeking specialist legal help will ensure that the paperwork is filled out correctly, and our experience in serving Statutory Demands  will help reach a fast settlement for your company.

What Information do you Provide in a Company Statutory Demand?

It is pivotal that all creditors abide by the insolvency rules to ensure that their Demand is valid. Information that needs to be included is:

• The identity of the debtor, including name and details of the company.
• The identity of the creditor, including name and address.
• The debt total, which needs to be a fixed sum.
• Context around the debt, including how it occurred.
• For debts that include a court judgment, the date of the judgment and name of the court is required.
• Any other charges that apply.
• A notification that the company can apply to a court for an injunction to restrain the presentation of a winding-up petition. You will also need to include the name of the Court to which they can apply to.

This must also be signed by the creditor, or by someone who is authorised to do so by the creditor. It is vital to consult with a knowledgeable solicitor who can assist you with drafting the Demand.

What Happens if the Debtor doesn’t comply with the Company Statutory Demand?

If the debtor fails to respond to the Statutory Demand within the 21-day timeframe, the creditor can take legal action. This can involve causing liquidation of the company through a winding-up petition, and you have four months to apply for this. If the deadline is missed, this would need to be explained to the court specified in the demand, and it is at their discretion to allow you to proceed.

Engaging a solicitor ensures that the statutory demand process is managed efficiently, allowing you to concentrate on your business operations while we handle the legal complexities on your behalf.

Benefits of serving a Company Statutory Demand

As the creditor, there are many benefits to serving a Company Statutory Demand. As this process does not involve the courts, there are no added court fees, so it can be a very cost-effective method to recover debt owed quickly.

Not only this, but it is a likely way to engage the debtor as it carries the weight of potential insolvency or liquidation if unresolved within three weeks. This means that the debtor is more likely to take action to avoid further, more serious consequences.

Issuing a statutory demand is a precise and time-sensitive process. Our solicitors are highly efficient and ensure that every detail complies with the Insolvency Act, reducing the risk of delays or complications.

Having taken your instructions, the drafting of the documents would usually be completed within 4 days. There are, however, other forms of service that might be appropriate for different circumstances that take different amounts of time.

Once a Statutory Demand has been served, the debtor will have just 18 days to respond.

How much does it cost to serve a Company Statutory Demand?

Our experienced team understands the creditor’s need for written confirmation of the debt while minimising any additional costs.

That’s why our SRA regulated firm offer a small, fixed fee of £420 for producing and posting a Statutory Demand. With the majority of our clients receiving full debt repayment, this amount can be reclaimed from the debtor, meaning all costs can be refunded.

There is more about our fees on our website.

If you have any questions or require any further information, please don’t hesitate to Contact Us.

Our Company Statutory Demand Solicitors have a high success rate in settling debt owed. We provide advice based on your specific circumstances, optimising the chance of a full repayment. Our Commercial Debt Recovery Lawyers pro-actively stay up to date with changes in the law, meaning that a solution can be reached with a lower chance of debt dispute.

Our Solicitors in Stockport & Cheshire take pride in delivering a high-quality service to clients in a wide range of areas, such as Marple, Poynton, Alderley Edge and Macclesfield.

If you have a Statutory Demand request or other business law query, get in touch with our Business Solicitors in Manchester by filling in this Contact Form, or coming into one of our offices in Bramhall, Cheadle, Hazel Grove or Heald Green. We are here to help you.