What is a statutory demand?
If someone owes you money that they will not repay, a statutory demand is one way to try and recover that debt. A statutory demand is a written request to a debtor (person or business that owes you money) for the payment of a debt. It tells the debtor things like:
how much must be paid
when payment must be made – for example, immediately or by a certain date
what will happen if the demand is ignored – for example, court action to recover the debt
details of who they can contact about the demand
their right to dispute (disagree with) the demand
What to do if you receive a statutory demand
If you receive a statutory demand you have:
21 days (or 28 if you live abroad) to ‘satisfy’ the demand
18 days (or 22 if you live abroad) to ‘set aside’ the demand - challenge it in court to get it cancelled
A demand is satisfied if the debt is ‘settled’ (paid in full) or ‘secured’ (an agreement is reached to pay it, for example, in instalments). To set aside a demand - see the section ‘How to challenge a statutory demand’.
You shouldn’t ignore a statutory demand. If it isn’t satisfied or challenged, the creditor (person owed money) can apply to the court to issue a bankruptcy or winding-up order against you. Bankruptcy orders are for individuals and sole traders and ‘winding-up’ orders are the equivalent for a company.
If you own a business that has received a statutory demand you can get more information on what to do from the Businesslink website.
Source - http://www.direct.gov.uk/en/MoneyTaxAnd ... /DG_187711
I found this info to be quite useful when I had a Statutory Demand sent to me. This document looks pretty scary. Luckily for me I managed to challenge my SD and ended up winning, however, as I didn't know then what I know now, I was petrified when I received it.
On the flip side, maybe some of the folks in the forums who have money owed to them could use a Statutory Demand against the company or individual who owes them. For instance, I have read that many of you are not receiving payments for your fee schedules, could be an idea to try SD's.
The SD I received put an immense amount of pressure on me due to the very nature of the document. I do not scare easily, so i was thinking that, maybe the SD would scare the parties that owe us money.