How long is a statutory demand valid for?
If you don’t comply with a statutory demand or set it aside, the creditor usually has four months to petition for your bankruptcy. If a creditor wants to use a statutory demand that’s more than four months old, they’ll need the court’s permission.
Does a statutory demand affect your credit rating?
Statutory demands aren’t recorded on your credit file, although all missed payments are. When your bankruptcy terms have been confirmed by the official receiver, it’ll be recorded on your credit file.
How can I identify a statutory demand?
A statutory demand is a form which includes details of the debt you owe.
The forms will normally be delivered to, or ‘served’ on you in person. This means your creditor or an agent working on their behalf will visit to hand you the form.
They can send the statutory demand by post, but only if they’ve tried to serve it in person first and been unsuccessful.
The format of the demand and how the creditor needs to serve it is set out in insolvency legislation
Can I ignore a statutory demand?
If you ignore a statutory demand, it’s likely that you could be made bankrupt. If you don’t agree with a statutory demand you’ve been given, you can apply to challenge it and get it ‘set aside’.