Q&As

Can you serve a statutory demand on two individuals jointly and severally liable for the debt and if so, how would you effect service in such a case?

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Published on LexisPSL on 24/05/2018

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Can you serve a statutory demand on two individuals jointly and severally liable for the debt and if so, how would you effect service in such a case?
  • Joint and several liability
  • The conditions to make someone bankrupt
  • Statutory demands
  • Service of a statutory demand

Can you serve a statutory demand on two individuals jointly and severally liable for the debt and if so, how would you effect service in such a case?

Joint and several liability

Joint and several liability arises where two or more persons under the same contract make a promise to the same person, and at the same time each of them individually makes the same promise to that same person.

Where two or more persons make joint and several promises to another, each of the promisors incurs both a joint and a several liability. This means that all or any of the promisors may be sued, at the option of the promisee, in respect of a joint and several liability, and separate actions may be brought against each.

See Practice Note: Joint, several, and joint and several liability.

The conditions to make someone bankrupt

Where debt is owed on a joint and several basis, for a creditor to serve a statutory demand (which is a precursor to bankruptcy), it may be prudent to look at the conditions to make someone bankrupt.

Section 264 of the Insolvency Act 1986 (IA 1986) requires that the bankruptcy petition is served by certain persons only (such as the individual's creditors or jointly by

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