Statutory Demands
What is a Statutory Demand?
A Statutory Demand (or Stat Demand) is not a Court Order, but it is a legal request for payment of debt owed of over £750 for a company and £5,000 for an individual.
Statutory Demands carry significant legal implications and can often be a quicker resolution if the debtor is ultimately insolvent. Statutory Demands should only be used when there is a belief that there are no disputes in connection with the debt, and using them as a debt collection tool rather than proof of insolvency is frowned upon.
What we need from you
We would need the details of the debt, contract or agreement, how it was incurred, details of amount due and any payments made. The name and address of the company, any correspondence between you and the company.
Timescales & process
STA Legal aims to complete statutory demand requests within 3 working days, depending on the amount of paperwork and review involved prior to issuing. This demand is then sent to you for approval prior to being ‘served’ on the defendant via a process server.
The defendant then has a strict time limit to challenge the demand. If no challenge is made nor payment within 21 days of service, then we can look to declare the debtor as insolvent via winding-up or bankruptcy proceedings.
