Q&As

A debtor has moved from their last known addresses and a property they own is tenanted by third parties. Where a creditor has the debtor’s email address and mobile telephone number, can service of a statutory demand be affected on the debtor by email, text or WhatsApp message without an order for substituted service?

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Produced in partnership with Alison Curry of Insolvency Support Services
Published on LexisPSL on 25/02/2019

The following Restructuring & Insolvency Q&A Produced in partnership with Alison Curry of Insolvency Support Services provides comprehensive and up to date legal information covering:

  • A debtor has moved from their last known addresses and a property they own is tenanted by third parties. Where a creditor has the debtor’s email address and mobile telephone number, can service of a statutory demand be affected on the debtor by email, text or WhatsApp message without an order for substituted service?

Insolvency (England & Wales) Rules 2016 (IR 2016), SI 2016/1024, r 10.2 provides that a creditor must do all that is reasonable to bring the statutory demand to the debtor’s attention and, if practicable in the particular circumstances, serve the demand personally. It does not mandate obtaining an order for substituted service where personal service is not practicable, (as would be required to effect service of any subsequent bankruptcy petition).

Where personal service is not practicable, the creditor should follow the guidance as set out in the Practice Direction on Insolvency Proceedings (PDIP), which provides:

‘11.2 Rule 10.2 applies to service of a statutory demand whether within or out of the jurisdiction. If personal service is not practicable in the particular circumstances, a creditor must do all that is reasonable to bring the statutory demand to the debtor's attention. This could include taking those steps set out at paragraph 12.7 below which justify the Court making an order for service of a bankruptcy petition other than by personal service. It may also include any other form of physical or electronic communication which will b

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