Q&As

Can you amend a statutory demand that has already been served on an individual debtor to include a further debt that has arisen post-service? Or do you need to serve a new or additional statutory demand?

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Published on LexisPSL on 03/06/2019

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Can you amend a statutory demand that has already been served on an individual debtor to include a further debt that has arisen post-service? Or do you need to serve a new or additional statutory demand?

Can you amend a statutory demand that has already been served on an individual debtor to include a further debt that has arisen post-service? Or do you need to serve a new or additional statutory demand?

The answer to this question appears to be that it is not possible to amend the statutory demand and a new or additional demand needs to be served.

The purpose of a statutory demand is to establish that the debt is one which the debtor appears to be unable to pay within section 267(2)(c) of the Insolvency Act 1986 (IA 1986). IA 1986, s 268 provides only two ways of establishing this: service of a statutory demand or unsatisfied execution of a judgment or order.

The statutory demand route requires that a demand in the prescribed form is served on the debtor and three weeks elapse from service during which time the demand is neither: (i) complied with by payment of the debt or by securing or compounding it, nor (ii) set aside. An application to set aside a statutory demand has to be made within 18 days of service, as per Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 10.4(2), though time can be extended. The essence of establishing inability to pay is that the debt has been unpaid or unchallenged for three weeks. If it were

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