What do I do if I receive a statutory demand?

What do I do if I receive a statutory demand?

Your options if you receive a statutory demand

1. Apply to have the statutory demand cancelled.
2. Pay the debt in full.
3. Offer to pay by instalments.
4. Ask your creditor to write off the debt.
5. Offer security on your property against the debt.
6. Set up an individual voluntary arrangement.
7. Reduce the amount you owe to below £5,000.

Can I serve a statutory demand by email?

More commonly, demands are served by email to an address known to be regularly used by the debtor. It is helpful in these cases to also send a copy by post. Once acknowledged, the debtor is unlikely to have an argument that the demand was not received.

What is a statutory demand form?

Details. Someone who is owed money (a ‘creditor’) can use this form (called a ‘statutory demand’) to ask for payment of a debt from a limited company within 21 days. The creditor would then give (‘serve’) the completed form to the limited company who owes them the money (the ‘debtor’).

What is a statutory demand insolvency?

A statutory demand is a demand made to a company by a creditor under Section 459E of the Corporations Act. One of the most common ways for a creditor to prove that a company is insolvent is to show that the company failed to comply with a statutory demand.

Does a statutory demand have to be served personally?

A statutory demand must be served in person by either handing it to the individual concerned, or else leaving it at the registered office or with the company director or company secretary. It can only be sent by post if it is not possible for the notice to be delivered in person.

Does a statutory demand affect credit rating?

A Statutory Demand issued to a business which is ignored after the stipulated 21 days will allow the creditor to start insolvency proceedings to wind up your company. This alone will immediately seriously impact a company’s credit rating.

Does a statutory demand need to be filed?

The period for compliance with a Statutory Demand 2.6 Any application under s459G of the Corporations Act to set aside a Statutory Demand must be filed with the Court and served on the creditor within 21 days after service of the demand.

Can anyone issue a statutory demand?

You can make a statutory demand to ask for payment of a debt from an individual or company. Anyone who’s owed money (the ‘creditor’) can make a statutory demand. You do not need a lawyer. If the debt’s over 6 years old, you cannot usually make a statutory demand.

What happens if you ignore a statutory demand?

An individual who ignores a Statutory Demand, either by not paying the debt or making a mutually acceptable arrangement with the creditor, is at risk of being ordered bankrupt. Bankruptcy means that all of your assets will belong to a Trustee in Bankruptcy who will sell them and distribute payments to your creditors.

Do you need to file a statutory demand?

you do not need a court judgment to issue a statutory demand; you can issue a statutory demand with invoices or other documents confirming a debt is owed; there is no large filing fee; it is a relatively quick process as it requires the Defendant to pay within 21 days; or.

How long is a statutory demand valid for?

How long is a statutory demand valid for? If you don’t comply with a statutory demand or set it aside, the creditor has four months to petition for your bankruptcy. If a creditor wants to use a statutory demand that’s more than four months old, they’ll need the court’s permission.

How long are statutory demand valid for?

How to make and serve a statutory demand?

Statutory demand forms. Choose the form you need, fill it in and deliver (‘serve’) it to the individual or company that owes you money. You do not need to send a separate letter. Which form you need depends on whether you’re collecting a debt that’s:

How to make a personal service of statutory demand certificate?

Rule 6.11 Form 6.11 Certificate of Personal Service of Statutory Demand (TITLE) Date of Statutory Demand. (a) Insert name, address and description of person making the statements in the Certificate and whether the creditor or a person acting on his behalf.

When to use form 6.1 under Section 268?

Form 6.1 Statutory Demand under section 268(1)(a) of Notes for Creditor If the creditor is entitled to the debt by way of assignment, details of the original

When do I need to fill in a demand form?

Which form you need depends on whether you’re collecting a debt that’s: payable in the future, if you think they will not be able to pay the debt when they need to If you’re serving a demand on a business partnership, you need to download and fill in a form for each partner.