a powerful weapon in the hands of a creditor where there is an undisputed debt owed to it
A formal legal document requiring a debtor to pay off an outstanding debt or secure it against property otherwise the creditor will bankrupt the debtor. Ignoring a Statutory Demand allows the creditor to start bankruptcy proceedings.
a formal document served on an individual or a business requiring payment in settlement of a debt by a specified time limit. Failure to comply with such a demand is often used as evidence of insolvency in support of a bankruptcy or winding-up petition
A formal notice requiring payment of a debt exceeding £750 within 21 days, in default of which bankruptcy or liquidation proceedings may be commenced without further notice.
A formal demand made by a creditor to a debtor for repayment of a debt. Upon service of a Statutory Demand, the debtor has 21 days in which to repay the debt or come to a satisfactory arrangement to pay the debt, to the creditor. If this is not done within the stated time, the debtor can be made Bankrupt or in the case of a limited company, the company can be wound up.
A written demand served upon an individual or company prior to winding up or bankruptcy proceedings as a way of trying to prove they are unable to meet their debts as they fall due.
A statutory demand is a legal document requiring the debtor to pay an outstanding debt in instalments or as a lump sum, or to secure it against a property.
A demand for payment in a prescribed statutory form under Section 123 of the Insolvency Act 1986. A creditor serves a statutory demand and the debtor is required to pay the debt within twenty-one days, failing which the creditor may petition the court for a winding up or bankruptcy order on the grounds that the debtor cannot pay his debts.
