You can use the statutory demand to request payment of monies due from a debtor. The demand will request payment within twenty one days and warn the debtor that if payment is not received you will present a petition either for their bankruptcy or in the case of a company, to wind up the company. The implications of a bankruptcy order or winding up order are that the debtor would no longer be able to trade.
In cases where the debtor is anxious to continue trading, this procedure can produce a speedier result than County Court proceedings. However, this procedure should be used where there is a prospect of the case being defended by the debtor. If this procedure is used in a case that may be defended then, it could prove very costly to the Claimant. It is vital that you take specialist legal advice in this area before proceeding. Clarkson Hirst can draft the relevant forms and provide you with advice.
If the debtor does not pay following the service of a statutory demand then you can present a petition for bankruptcy or winding up if the debtor is a company. This is an expensive process and specialist legal advice should be sought before proceeding.
Our charge for preparing a Statutory Demand is £100 plus VAT. The Statutory Demand has to be personally served and the cost of service does vary depending upon where the debtor resides. The normal charge for a Process Server would be in the region of £100.