Statutory Demands – Free Help and Advice
A Statutory Demand is a formal document which can be issued to a debtor who has loan repayment arrears. This is the first step of the legal process a creditor may use to obtain a court order to get you to repay your debt.
If you do not repay your debts on time, your creditor may use the power of the courts to get you to settle the debt or start making reasonable payments.
A creditor has the option to try to bankrupt you, with a statutory demand being the first step of that process.
A Statutory Demand requires you to settle the outstanding debt by either:-
- Pay monthly/weekly payments
- A lump sum
- Secure it against a property or other assets.
Within 18 days is receiving a Statuary Demand, you may apply to your local County Court to set it aside under the following circumstances:
- The amount of money owed is in dispute
- The debt is not payable now.
- You are perpared to secure the debt to the creditors satisfaction under the creditors stated terms.
- The amount owed is less than £750.
- The statutory demand has been issued in error or does not comply with rules.
- You can and are about to repay the debt.
- You have a counterclaim of more than the money owed.
Ignoring or Failing to comply to a Statutory Demand entitles the creditor to present a petition for bankruptcy 21 days from the date of issue.
Some companies use statutory demands as a scare tactic. They know that when someone is unable to repay a debt, they generally have more than one debt, and that whomever shouts loudest tends to get paid first. However, you should always take a Statutory Demand seriously.
What To Do Next
If you have received a Statutory Demand, or have been threatened with one, then please call us for FREE advice or submit the form on the left of this page.
You will have more options to repay your creditors than stated in terms of the demand.
Types of Statutory Demand
There are 3 types:-
- Demand for a presently due debt, but not currently subject to a court order.
- Demand for a presently due debt, which is subject to a court order.
- Demand for a debt which is due some time in the future.
A Statutory Demand can only made for an unsecured debt. If the creditor holds some security on the debt, than that value must be stated so the unsecured portion of the debt is known.
For debts due in the future, the creditor must give reasons as to why it is considered that you have no realistic chance of making payments when they fall due.
The demand is normally issued to you in person by the creditor. It may be posted provided there is proof that you are aware of the demand.
If you are not contactable, them the demand can be issue by advertisement, however the creditor requires a court order to allow this.
Failure to comply to a statutory demand is seen as proof you are not able to repay the debt, and as such, the creditor is entitled to serve a bankruptcy petition to the court.
What To Do Next
If you have received a Statutory Demand, or have been threatened with one, then please Call Us for FREE advice.
We can offer a solution that will be affordable to you and acceptable to your creditors.