Your rights and statutory demands
If you receive a statutory demand:
A Statutory Demand is a formal legal document requiring you to pay off an outstanding debt either by instalments or a lump sum or to secure it against a property. If you do not comply with the demand, the creditor may be able to apply for bankruptcy against you within 21 days.
With this being the case it is vitally important that YOU DO NOT IGNORE a Statutory Demand as this could lead to you becoming bankrupt.
So what do you do?
You should apply within 18 days to your local County Court to "set aside" the Statutory Demand under one of the following circumstances:
- There is a dispute regarding the amount of money owed.
- The sum owed is less than £750.
- The demand has been issued in error.
- You have means of paying the debt (i.e. can make a reasonable offer).
- There is a counterclaim of more than the money owed.
Unless such an application is made, the Statutory Demand must be complied with to prevent any further action being taken against you (ie: the amount claimed within the demand must be paid).
Whilst every effort is made to ensure that the legal information contained on “YouandYourRights” is accurate, it does not constitute legal advice tailored to your individual circumstances. If you act on it, you acknowledge that you do so at your own risk. Neither the Proprietor nor Dean Dunham can assume responsibility and do not accept liability for any damage or loss which may arise as a result of your reliance upon it.