Statutory demands for property disputes lawyers

This Overview points out the key areas for property disputes lawyers dealing with statutory demands, and indicates where to find information. For a general introduction to statutory demands, see Practice Note: Statutory demands for property disputes lawyers.

What is a statutory demand?

A statutory demand is a formal demand for payment of a debt which is served by a creditor on its debtor (it is not a court process and it does not need to be issued at court).

Under the Insolvency Act 1986 (IA 1986), a statutory demand can only be served on:

•
an individual if the debtor owes a liquidated and unsecured debt exceeding the bankruptcy minimum threshold (the bankruptcy level) of £5,000 and that debt is not disputed, or there is no cross or counterclaim which equals or exceeds the debt
•
a company if the company owes at least £750

Prior to serving a statutory demand, the landlord should check that the tenant is not already subject to an insolvency regime which would prevent a demand being served. Examples include the free-standing moratorium applicable

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