Have you received a Statutory Demand?
You must act quickly (usually 18 days) when you receive a statutory demand if you hope to avoid the creditor bankrupting you.
Where that creditor is Her Majesty’s Revenue & Customs (“HMRC”), it is inevitable that unless action is taken the demand will eventually lead to the presentation of a bankruptcy petition.
What is a Statutory Demand?
A statutory demand is a document outlining a creditor’s claim against a debtor. The statutory demand is intended to be relied upon in further legal proceedings against you (to bankrupt an individual) and which ought to:
- provide details of the financial claim, with interest calculated to the date of the demand;
- be served on you as debtor personally or by post; and
- tell you what to do to comply with the demand, have it set aside and the consequences of doing neither.
The format must follow the guidelines set out in the Insolvency Rules 1986, but it is not a court document. Although the demand is dated at the time of issue, it does not expire. The time limits to deal with a demand only apply from the date of service.
Setting Aside a Statutory Demand
It is imperative that you act promptly – you have in the first instance only 18 days as of right to apply to the Court for a set aside once you have received a Statutory Demand. Should you apply and later than 18 days after the date of service, your application will be listed only at the Court’s discretion and you will need the permission of the Court to make the application.
Often the use of Statutory Demands is inappropriate and in many cases they can be set aside by the Court. This will prevent a creditor from commencing any formal insolvency process against you.
Why you should instruct specialist Statutory Demand Solicitors
We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inns of Court adjacent to the Royal Courts of Justice. We are experts in dealing with matters surrounding insolvency in particular issues. We may be able to offer you a no win no fee service to make a set aside application to the Bankruptcy Court at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.
Whilst we are based in London we provide national coverage across all Courts in England & Wales.O