Statutory Demands
Often, the pre-cursor to a Winding Up Petition is a Statutory Demand. Usually, where a statutory demand is served by the creditor, the debtor has 21 days to either pay the debt or make an application to court to restrain the creditor from presenting a winding up petition. However, during the pandemic the Corporate Insolvency and Governance Act 2020, prohibited Statutory Demands issued between 1 March 2020 and 30 September 2021 forming the basis of Winding Up Petitions.
The statutory demand must be in a prescribed form and meet the strict requirements as set out in the Insolvency Rules 2016.
The statutory demand must be served personally on the debtor. If this cannot be done, other methods of service may be accepted by the court. For example, if you have a judgment against the debtor who is attempting to avoid service of the statutory demand, the rules permit you to advertise the statutory demand, which may be treated as good service of the demand.
You can present a Winding Up Petition from any time after 21 days from the date of service (providing it is not formally challenged by the debtor) but you must present the petition within 4 months of service of the demand. If a petition is not presented within the 4 months’ time limit, a fresh demand may need to be served.
There are many reasons for challenging a statutory demand including that it was not served property; the company genuinely disputes the debt; or that there is a cross-claim, or right of set-off against the creditor that exceeds the amount claimed in the statutory demand. If your company has been served with a statutory demand, you must act swiftly to address it to prevent a winding up petition being issued.
Our barristers at Mercantile Barristers are specialists in advising and representing corporate clients issue and defend statutory demands in anticipation of Winding Up Petitions.
How Our Process Works
You can call, email, or fill out an enquiry form to tell us about your case. One of our specialist clerks will speak with you to make the arrangements to advance your case.
Our specialist clerk will match you with the barrister with the expertise to deal with all aspects of your case. They will also obtain and organise the papers the barrister will have to consider in your case.
Our clerk will agree the fee for your consultation with the barrister beforehand. The clerk will then arrange a convenient time for you to have the consultation by video call, telephone or in person.
In the consultation the barrister will assess your legal position, devise a legal strategy, and give you appropriate advice on the necessary next steps to achieve your objective.
Fill in the form below and one of our specialist clerks will get in touch.
