A Statutory Demand is a cost-effective and quick method of establishing the insolvency of a company or an individual. We advise on Statutory Demands regularly at Adams & Remers and so we can give you the best advice – whether you are issuing or defending a demand.

It is important to seek advice as soon as you are served with a Statutory Demand. An individual served with a Statutory Demand has 18 days from the date of service to apply to court to set aside the demand in the event that they dispute the demand. If no application is made within that timescale, the creditor may proceed to apply to petition for the bankruptcy of that individual after 21 days have passed since service of the Statutory Demand.

If a company is served with a Statutory Demand it has 21 days from the date of service to deal with that demand or face the prospect of a Winding Up Petition being presented. The options open to a company are as follows: -

• To offer security for the debt to the satisfaction of the creditor.

• To offer to compound the debt to the satisfaction of the creditor.

• In the event that the debt is disputed, the dispute must be brought to the attention of the creditor and an agreement must be sought from the creditor for the withdrawal of the Statutory Demand. In the event that the creditor does not agree to withdraw the Statutory Demand, then the company would have to apply to court to obtain an injunction to prevent the creditor from presenting a petition to wind up the company.

For further advice contact our team direct or talk to your usual contact in the firm.