A Statutory Demand is the next step in our debt resolution process for individuals or companies that have served a 7 day Letter of Demand that has not been satisfied. The Statutory Demand is giving notice to someone else that you demand immediate payment of a debt which you say is due from them. Making the demand in this form means that unless the form is dealt with in a particular way, the Courts will treat the debt as having certain consequences.
Anyone can serve a Statutory Demand, it’s just like writing a letter - it is not a Court document.
From 1st October 2015, the Government increased the debt threshold for Bankruptcy to £5000, as a result of which, Statutory Demands for less than £5000 can no longer be used as a basis for a Bankruptcy Petition (i.e. against an individual). The limits applicable to companies (Winding Up Petition) remain unchanged at £750.
A Statutory Demand must be served properly in order to be valid. A Statutory Demand should be served in person at the debtor’s address. We can arrange service using a process server for an additional charge of £100 + VAT. Alternatively for no extra fee we can simply post the demand. Often the debtor will acknowledge postal service by engaging in a dialogue after postal service, which then removed the need for a process server to be involved. If however the debtor failed to acknowledge its service, a post served Demand would not be properly served.
How long will it take?
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.
Our work will be charged at a fixed fee of £90 including VAT for our standard Statutory Demand regardless of how much work we actually do. In some cases this may mean we’ll get relatively better paid for doing less work than in other cases, in which the fixed fee will barely cover our costs. This is simply the nature of the mutual gamble between a solicitor and their client when they fix a fee.
We can also arrange service using a process server for an additional fee of £120 including VAT.
More detail of all these matters will be outlined in our retainer letter which you will be able to review before you engage us, after pressing the “Buy” button on the website.
If you have any questions or require any further information, please don’t hesitate to Contact Us.