A Statutory Demand is a formal written request, which can be sent to individuals or companies, which provides a 21-day period for the payment of monies due and/or the provision of security. It is effectively a ‘call to action’ and leaves debtors in no doubt as to a creditor’s intentions.
In the event of non-payment or failure to provide security, a creditor is able to issue a Bankruptcy Petition against an individual (debts exceeding £5,000) or a Winding Up Petition against a company (debts exceeding £750) in accordance with the Insolvency Act.
In the first instance, Statutory demands against individuals must be served personally and we have Nationwide panel of specialist agents who both serve legal process and trace individuals who have changed address or are deliberately avoiding engagement.
It is not strictly necessary to serve a Statutory Demand upon a company and notice of an intention to issue a Winding Up Petition can be provided in the initial letter of claim.