Fighting Debt - a user guide

11) BANKRUPTCY

c) Being made Bankrupt from a Creditor via a Statutory Demand

What is a statutory demand?

A statutory demand is a formal demand made by a creditor for payment of a debt of more than £750.

You have 21 days to reply to the statutory demand.

The 21 days start from the date you received the demand. The date you receive the demand is classed as the same day the demand is delivered to you if it is before 4:00pm. If it is delivered after 4:00pm, you will be classed as having received it the next day.

The Statutory Demand Document is received from the Creditor in a prescribed format requiring the debtor to either:

1) pay the debt amount in the demand within 3 weeks after the demand is served.

2) to make an arrangement to pay within 3 weeks after the demand is served.

3) provide security to pay the debt within 3 weeks after the demand is served.

There are three forms of Statutory Demand which are:

1) demand for a debt due not based on a county court judgement

2) demand for a debt due based on a county court judgement / order of the court

3) demand for a debt that is due at a future date

A Statutory Demand can only be made for an Unsecured Debt. If the Creditor holds any security on the debt this must be specified with the value so the amount of unsecured debt can be calculated and shown correctly.

On the Statutory Demand, the following must appear:

1) Full Name and Address of the Debtor

2) Full Name and Address of the Creditor

3) Date in Full on when the Statutory Demand has been served

4) Amount of the Debt and Interest if any is being claimed

Compliance with the Demand

If a debtor does not respond or comply with the Demand within the 3 week deadline (21 days) then the debtor is deemed as 'unable to comply with the demand'. The day that the Demand was served and the Petition was presented are ignored for the purpose of calculating if the correct time has been allowed.