01698 312 080

mail@tchlaw.co.uk

Statutory Demand

Statutory Demand's can be served against companies or Limited Liability Partnerships (LLPs) for debts in excess of £750 and for individuals the value must be £3000 or more.

If the Debtor does not deny the debt (for individuals by returning the prescribed form) and for companies/LLPs with a substatnive and validated and genuine dispute, then the insolvency process can be initiated.  For individuals this is by presenting a Sequestration Petition, and for Companies/LLPs by presenting a Liquidation Petition, to the applicable Sheriff Court.  If, however, the company has a share capital in excess of £120,000 then you must Petition through the Court of Session.

When instructing us to send a Statutory Demand you should supply us with a Statement of Account, and preferably copies of the outstanding invoices.  This will support the debt you are pursuing.

We will prepare the formal Demand papers for you and arrange for service on your Debtor by Sheriff Offficer.  If there is no denial within 21 days after service we are able to institute insolvency proceedings upon your instruction to do so. 

In cases where there is a denial (and in the case of companies and LLPs that denial is substantiated)

What to do if there is a denial?

Individuals

In such cases, as long as the denial has been send in accordance with the Demand and within the 21 day timescale, then you will be unable to instigate insolvency proceedings against your debtor.  That said, if you consider there is no genuine denial of the debt then court action is still possible. 

Companies & LLPs

If your debtor makes a denial, then it must be substantiated and genuine.  Debtors cannot simply put forward a blunt denial and expect that insolvency proceedings will not be taken, and be successful against them. 

If, however, there is a substantiated denial put forward then all is not lost.  If you wish to take the matter further then you still have the option to instruct a court action.

Statutory Demand Solicitors Glasgow, Scotland

If you would like to talk through Statutory Demand process with one of our Scottish debt recovery specialists or have any questions, please contact TCH Law, based in Hamilton.

To do so, please call 01698 213 080. Alternatively, please complete our online form or email mail@tchlaw.co.uk