{"id":189482,"date":"2024-07-28T20:30:55","date_gmt":"2024-07-28T19:30:55","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=189482"},"modified":"2024-07-28T20:31:38","modified_gmt":"2024-07-28T19:31:38","slug":"statutory-demands-legal-process-consequences","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/statutory-demands-legal-process-consequences\/","title":{"rendered":"Statutory Demands: Legal Process and Consequences"},"content":{"rendered":"\n

As a business owner, obtaining customer payments is crucial to running your business smoothly. You likely invoice and pay you later as their creditor for some of your customers, such as other companies you do business with. You may also give credit facilities to individuals purchasing your business services or products. However, your debtors could fail to pay their debts, leaving you chasing them for payment. One way to consider dealing with an outstanding debt is through a formal demand called a statutory demand to get the debtor’s attention. This article will explain statutory demands in terms of the legal process and consequences.<\/p>\n\n\n\n

What is a Statutory Demand?<\/h2>\n\n\n\n

A statutory demand is a legal document demanding that a debtor pay you money within 21 days. It also acts as proof that they owe you the debt. A statutory demand is not a form of court proceedings for chasing a debt. However, you must follow a specific legal process to serve one, as found in the Insolvency Act 1986. <\/p>\n\n\n\n

When Might I Use a Statutory Demand?<\/h2>\n\n\n\n

You can use a statutory demand where the money owed is more than \u00a3750 and can do so as soon as your debtor’s debt to your company becomes due. However, you cannot use one where you do not know the exact sum owed to you and generally cannot if the debt is older than six years, <\/p>\n\n\n

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You may also use a statutory demand to start the process of making an individual bankrupt or winding up a business. The former is possible where the individual owes you at least \u00a35000 and the latter where a company owes you at least \u00a3750.\u00a0<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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