Statutory Demand | Debt Recovery

by | Nov 26, 2015 | Blog Posts

Statutory Demand

Does a Statutory Demand need to be reissued if it is withdrawn? But the debt remains unpaid…

Why would I reissue a statutory demand?

You can serve a statutory demand upon a company who has not paid your invoice. The company upon receipt of the statutory demand has assured you – for example – that payment will be made within 7 days. Consequently, by agreement you have agreed to withdraw the demand. However, the 7 days have now elapsed and the company has still not paid.

Do you have to reissue the statutory demand and serve it again upon the company?

Firstly, it is not a mandatory requirement to serve a statutory demand when a debt is not disputed. It is possible for a Creditor to immediately issue a petition when a debt is not paid (and not serve a statutory demand at all), where it is possible to prove to the Court that a company is unable to pay its debts as and when they fall due.
However, in the majority of occasions Creditors serve a statutory demand and allow the usual period of 21 days for a response before seeking to wind-up a company.  The reason being is that it demonstrates compliance with the Insolvency Act and shows, for the purpose of the winding up proceedings, that a company is unable to pay its debts.
A further alternative – if you are seeking a debt from a company, it is possible to send a winding up letter with three days’ notice and if payment is not made during that period then a winding up petition can be pursued.  It is possible for the Creditor to immediately commence winding-up proceedings. However, most Creditors look to serve a further demand – or give notice to the company prior to proceeding with a petition – as it will support the petition as evidence that the company cannot pay.
Arrange a call back with our specialist debt recovery department in Leeds, Wakefield & Manchester.

Recently Added

The Importance of a Lasting Power of Attorney

The Importance of a Lasting Power of Attorney

What is a Lasting Power of Attorney? A lasting power of attorney (LPA) is a legal document that lets you appoint one or more people as an ‘attorney’, who have the power and authority to help you make decisions on your behalf if you lack mental capacity and can’t do it...

Personal Injury Trusts

Personal Injury Trusts

Personal Injury Trust (PIT) What is a PIT? If you currently receive means tested benefits and are due to receive a compensation payment for an injury, you may lose some or all of your entitlement to the benefits if your capital goes above the capital limit. Placing a...

What our Clients Say