Statutory Demands - Free Help and Advice
A Statutory Demand is a formal document which can be issued to a debtor who has loan repayment arrears. This is the first step of the legal process a creditor may use to obtain a court order to get you to repay your debt.
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If you do not repay your debts on time, your creditor may use the power of the courts to get you to settle the debt or start making reasonable payments.
A creditor has the option to try to bankrupt you, with a statutory demand being the first step of that process.
A Statutory Demand requires you to settle the outstanding debt by either:-
- Pay monthly/weekly payments
- A lump sum
- Secure it against a property or other assets.
Within 18 days is receiving a Statuary Demand, you may apply to your local County Court to set it aside under the following circumstances:
- The amount of money owed is in dispute
- The debt is not payable now.
- You are perpared to secure the debt to the creditors satisfaction under the creditors stated terms.
- The amount owed is less than £750.
- The statutory demand has been issued in error or does not comply with rules.
- You can and are about to repay the debt.
- You have a counterclaim of more than the money owed.
Ignoring or Failing to comply to a Statutory Demand entitles the creditor to present a petition for bankruptcy 21 days from the date of issue.
Some companies use statutory demands as a scare tactic. They know that when someone is unable to repay a debt, they generally have more than one debt, and that whomever shouts loudest tends to get paid first. However, you should always take a Statutory Demand seriously.
What To Do Next
If you have received a Statutory Demand, or have been threatened with one, then please call us for FREE advice or submit the form on the left of this page.
You will have more options to repay your creditors than stated in terms of the demand.
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This material is for general information and only constitutes advice in the broadest of terms. You should not rely on this information to make any decisions. Call our advisors on 0800 043 2444 for professional advice for your own particular situation.