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Debt Recovery
3. Statutory Demands
The other alternative to going straight to the courts is to issue a statutory demand.
3.1 You can only use this for undisputed, higher-value debts, ie outstanding debts of more than £750.
3.2 You send a formal demand for payment in a specified format.
- The format is set out in the Insolvency Rules. You can get appropriate forms online (eg from Oyez).
- Alternatively, ask your solicitor to organise it. This is a relatively low-cost procedure.
3.3 If the debt is not paid after 21 days (and you think there is money available), you can petition the court to wind up the company (or make an individual bankrupt). See 8.
- The prospect of being wound up (or made bankrupt) often has more effect on debtors than court procedures to recover the money.
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