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I
have received a Statutory Demand, what should
I do?
Firstly, do not ignore it.
Take it out of the bin! You need to act quickly
but there are remedies to this situation.
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.
Some creditors use the issuing
of a Statutory Demand as a tactic to frighten
you but they should always be taken seriously.
In particular a Statutory Demand issued by
the VAT (HM Customs & Excise) or the Inland
Revenue should be regarded as serious.
Seek immediate advice from
your local CAB www.nacab.org.uk
or other free debt advice agency (details
below).
Can I deal with this myself?
If you wish to act on your
own behalf 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.
I need further help
If you are unable to make the
payments requested you may need help to negotiate
with your creditors to achieve a level of
repayment you can afford. Contact a free debt
advice agency for further information.
Payplan - The Free Debt Advice Agency
Freephone 0800 917 7823
Email: help@payplan.com
Web: www.payplan.com
Citizens Advice Bureaux - www.nacab.org.uk
National Debtline - 0808 808 4000
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