If you or your business owe a creditor money, they could issue a statutory demand. This is the first step to making you bankrupt or winding up your business. Statutory Demands can have serious consequences for you or your business but, quick action can prevent these issues from becoming worse.
You have 21 days to deal with a statutory demand
You have 21 days from the demand is served to repay the debt in full or come to some other arrangement with your creditor. After this, the lender can apply to wind up the company or start the process to make you bankrupt.
Can You get rid of a Statutory Demand?
You can apply to ‘set aside’ a demand if you think that it is incorrect. This can be for several reasons for example if the amount is wrong or if the debt is more than 6 years old.
However, you must submit this application within 18 days of receiving the demand.
Alternatively, you can pay the demand in full, this will remove the demand and prevent any further action. We recommend getting expert advice before responding to any demand.
If you owe the debt as an individual the next step is to make you bankrupt. After this, a trustee will repossess and sell your home and assets to pay off your creditor(s).
If a creditor issues a demand to a business the process is mostly the same. In this case, your creditor could force the liquidation of your business. This means the business will be dissolved and a liquidator will sell the company’s assets to pay creditors.
You have 18 days to apply to set aside or 21 days to pay the demand in full.
By ignoring a statutory demand you can only make the situation worse. Additional costs will also continue to grow the longer you wait.
We recommend acting immediately. Bell & Company specialise in dealing with demands from creditors and pre-insolvency advice. If you have received a statutory demand contact us today to find out your options.
Call us on 0330 159 5820 or use the chat below to speak to an expert.