Statutory demand form and notes: service on a company or LLP
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this pack of forms
A statutory demand can be an incredibly powerful debt collecting device. The law assumes it merely paves the way for a bankruptcy or winding up petition, but the threat of a petition can spur repayment from the most staid debtor.
Furthermore, the procedure to issue one is very easy to follow. Using these forms, the guidance and the letter in this pack you should be able to issue a demand yourself without needing to involve solicitors or pay court fees.
These forms are suitable where the debtor is a company or an LLP. If the debtor is a person, use these alternative forms.
The format of the forms
We provide you with three versions of form 4.1 under section 123(1)(a) or 222(1)(a) of the Insolvency Act 1986.
Some of the text in the forms is laid down in the Insolvency Act 1986, and therefore must be left precisely as it is. We have made clear what that is.
The format and layout are not laid down, so we are able to provide our own user friendly version.
When to serve a debtor
Demands are not served as often as they could be. A common misconception is that a solicitor is needed to prepare the forms, or that it is a difficult process or that serving one is a certain path to litigation. In fact, in the right circumstances it is a fast and efficient way of collecting a debt.
The key is that your debtor has to believe that you will take the process further to wind up his company if he fails to pay. We advise that you should take that step if you need to do so, but you will find that in most cases you will not have to go further than a statutory demand. Now consider these points:
By law, the debt must be at least £750. There is no cost or filing or registration necessary.
But if your debtor is to believe you will wind up his company, you have to make him see that it will be worth your while. That means covering the fee on the petition to wind up, of £150, and maybe more for the risk of litigation. So we suggest that the minimum amount that you should pursue is £1,000.
You will not be paid if your debtor truly does not have the money. However, it is amazing how money is found when a creditor really presses hard.
You have to be certain that what is owed is a simple money debt. You cannot issue a demand for a case that could need a judge to decide.
It goes without saying that you should not expect to have an on-going relationship with the debtor.
You should reckon that your debtor is likely to repay you rather than risk his reputation. This is particularly true against large companies, companies where reputation is important to business, and to governmental organisations. (You could not actually wind up the Ministry of Defence, but they would certainly pay you fast if you issued a statutory demand!)
You may wish to read more about using this type of debt recovery device.
Pack features and contents
We provide three versions of the forms:
- The “traditional” form in PDF format to print and complete by hand
- The “traditional” form in Microsoft Word format to complete on your computer and then print
- The Net Lawman version, which we believe is easier to complete on your computer
There is full example text completed in the Net Lawman form to guide you with the wording you might use. Also included in the pack are:
- Guidance notes to help your further on how to complete the forms and serve notice
- Example letter you might send to your debtor with the form
This document was written by a solicitor for Net Lawman. It complies with current English law.
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