The best person to ask about sending a statutory demand is the person who is successful in defending them. I will let you know if sending a demand is the best method of collecting the debt.
The basic plan 1: Our statutory demand fee is £175 (includes the Letter Before Action) for the completion of the correct forms and sending the demands by post & email copies. (please note this method may not be sufficient to complete the process of bankruptcy or the winding up of a limited company as some courts still require the demands to be hand served by a process server.
B ut after receiving a Statutory Demand over 75% of individuals and companies make payment prior to any court involvement to save on cost. Don’t forget the basic Court fee for a Bankruptcy Petition is £1200. and for a company Winding up Petition £1800. this is on top of any solicitor or barrister fees. So unless you have deep pockets and you are confident that the person or company you are suing has enough liquid funds to repay you and your legal cost…then stick to the above basic plan as when a person or company receive a demand they would require the involvement of a solicitor if they dispute the debt in full and want to submit a defence.
T his alone would cost them over £2500. upfront for a solicitor to complete the defence documents for the court and they would have to contact you prior to any court hearing to let you have their defence statement and give you the option to withdraw the demand without incurring cost. (If they do not have a defence then a solicitor cannot help them) So compared to your cost of sending a demand to test their reaction its well worth doing as you could always withdraw at any time without incurring further cost. Its like throwing a stone at a wasps nest and running off without getting stung.
Professional Service by a Process Server
The full plan 2. If you require the demand to be served by hand because you intend to continue with the bankruptcy/winding up, we can instruct a professional serving company who would call at the individuals home or companies registered address to serve by hand and complete a witness statement that is required if you intend to bankrupt a person or wind up a company. The fee for this service is £95. plus the cost of the demand.
Why Use the Statutory Demand Procedure?
- Unlike a County Court Summons, the courts are not involved in sending a stat demand.
- So it’s instant and direct.
- It’s more cost effective (See below)
£1000 to £3000 = £225 + Judgment = £450
£3000 to £5000 = £350 + Judgment = £700
£5000 to £15000 = £485 + Judgment = £970
£15000 to £50000 = £695 + Judgment = £1390