What is a Statutory Demand All About?

Statutory Demand All About

What is known in the legal world as a “statutory demand” is often used as the main part of a serious debt claim against a company, or a person. Any kind of legal court judgement can be made use of as proof of insolvency which then means that a creditor can then pursue a bankruptcy petition against the person in question, or a winding up petition for a company.

Legal action of any type should not be neglected and a statutory demand delivers a straightforward tool for any creditor with meaningfulintentions against any company. Today, popular disaster recovery services can be consulted with for the best results.

Below are somequestions which are commonly asked:

What Procedure Takes Place?

After being served, it will then provide all of the contact information of the party to make contact with if the debt is going to be paid, and the person to reach if you have any disagreement with the debt.

If a company contests this ‘demand,’ the company and/or their lawyer should then make contact with the court regarding the demand and then an injunction can then be conducted in order to prevent the statutory demand.

  • After a period of 21 days has passed since the date of the statutory demand, the amount claimed has to be paid in full, or inside of 18 days of the date the debt should be completedor contested.

Time to Settle or into Liquidation

Should there be a failure to pay the full amount or agree to some kind of arrangementbeforethe endof the 21 days’ time period, it then meansthat the creditor can dissolve your companyor make you bankrupt if you area sole trader.

Any lack of success insettling the debt will bedeemed important as it is nowevidence that the company is beyond a doubt insolvent because of it not being able to pay its dues.

  • This will now mean that the business can be legallyterminated and then forced into compulsory liquidation.

Can a Statutory Demand be ignored?

In the negative. Should you go on to ignore a statutory demand, from an insolvency legal perspective the non-payment of a statutory demand is deemed legal proof of the limited company, or a person’s unsuccessful attempt to pay on the debt.

  • When the 21 days have passed, the company can also be concluded and the individual declared bankrupt.

If Receiving a Business Demand via Mail, is this Deemed Lawful?

Indeed. A statutory demand is commonly served and this can involve being sent by the registered post service, andthen someone will have had to have signed for the statutory demand.

  • There is also the possibility of it being ‘served’ legally if it is handed over personally to someone such as a manager, company secretary or director.

These are just a number of the things which you will need to be aware of with regards to a statutory demand, and you should contact legal professionals for any further information.

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