IVA Glossary
S
Statutory Demand
Statutory Demand refers to a formal notice that informs the receiver (the debtor) about the requirement of paying his or her debts within 21 days. Non-performance of a statutory demand means or has the consequence that the insolvency or bankruptcy procedures can legally be started without the need of any further warning or notice.
It should be noted that a statutory demand usually refers to payment-demands for debts that are higher than £750. Moreover, usually no liquidation proceedings are initiated prior to the end of the 21 days period after the Statutory Demand's validity. If the debtor manages to fulfil the requirements of the Demand during that period, this could terminate any winding-up procedure.
Finally, it is important to know that Statutory Demands are not valid for controversial debts that are debated or disputed.
It should be noted that a statutory demand usually refers to payment-demands for debts that are higher than £750. Moreover, usually no liquidation proceedings are initiated prior to the end of the 21 days period after the Statutory Demand's validity. If the debtor manages to fulfil the requirements of the Demand during that period, this could terminate any winding-up procedure.
Finally, it is important to know that Statutory Demands are not valid for controversial debts that are debated or disputed.
