Whether you want to send a statutory demand to recover money you are owed or have received a statutory demand and need to challenge it, it is important to understand the costs involved before proceeding.

We offer assistance with sending a statutory demand, responding to a statutory demand, applying to set aside a personal statutory demand and considering an injunction against a winding-up petition involving a limited company.

Free Initial Advice About a Statutory Demand

You can phone or email Nigel for an initial discussion about your statutory demand at no charge.

I can help you consider whether there may be grounds to dispute a debt, whether a counterclaim or set-off may apply, or whether sending a statutory demand is an appropriate way to pursue an outstanding debt.

If you have received a statutory demand, I can discuss the information you provide and explain the potential options available. If there does not appear to be a reasonable basis for challenging the demand, I can suggest alternative ways to respond.

An initial discussion is not a guarantee that you have a defence or that a court application will succeed. The appropriate advice depends on the circumstances and evidence.

1. Cost of Sending a Statutory Demand

Fee: £275

If an individual or limited company owes you money, sending a statutory demand may be an option for seeking payment before considering further insolvency proceedings.

Our quoted fee of £275 covers:

• Preparing the appropriate statutory demand.

• Completing the relevant demand documentation.

• Sending copies by post and email.

The correct statutory demand depends on whether the debtor is an individual or a limited company. A statutory demand must comply with the relevant legal requirements and should only be used where appropriate for the debt.

Sending a statutory demand does not guarantee payment. If the debtor disputes the debt, further advice or legal proceedings may be necessary.

The £275 fee does not include professional personal service by a process server, court proceedings or any additional legal representation unless expressly agreed.

2. Professional Service of a Statutory Demand

Additional fee: £150

If you intend to pursue bankruptcy proceedings against an individual or winding-up proceedings against a limited company, professional service of the statutory demand may be appropriate.

We can arrange for a professional process server to attend an appropriate address and attempt personal service of the demand.

Depending on the service arranged, this may include:

• Attendance by a process server.

• Attempted personal service of the statutory demand.

• A record of the service attempt and its outcome.

• Appropriate evidence of service for potential further proceedings.

The quoted process server fee is £150, in addition to the £275 preparation fee. Confirm the total cost and exactly what the process server’s fee covers before instructing the service.

Combined quoted cost for preparation and process serving: £425, subject to confirmation of any additional charges.

The appropriate method of service depends on the circumstances and the applicable insolvency rules.

3. Cost of Responding to a Statutory Demand

If you have received a statutory demand, the cost of responding will depend on whether you are an individual or a limited company and whether the debt is disputed.

The first step is to establish whether there are grounds to challenge the demand or whether another response, such as negotiating with the creditor, may be more appropriate.

An initial discussion with Nigel is available at no charge. Any further work will depend on the service required and the fee agreed.

Ignoring a statutory demand can have serious consequences. If you believe the debt is incorrect, obtain advice promptly because the applicable deadlines can be short.

4. Cost of an Application to Set Aside a Personal Statutory Demand

Fixed professional fee: £475

If you have received a statutory demand personally, you may be able to apply to the court to set it aside if recognised legal grounds exist.

The quoted fixed fee of £475 covers preparation of the application and supporting statement, as described below:

• Reviewing the information you provide about the statutory demand.

• Preparing a draft application and supporting statement.

• Sending you the draft statement to review and approve.

• Preparing the documents for filing once they have been approved and signed where required.

• Filing the application with the appropriate court in accordance with its requirements.

The court determines the next steps and whether a hearing is required. Hearing attendance, additional correspondence and other work are not included unless agreed separately.

Is There a Court Fee to Set Aside a Personal Statutory Demand?

A standard application to set aside a personal statutory demand under the Insolvency Rules 2016 does not normally carry a separate application fee.

The usual deadline for an individual served in England and Wales is 18 days from service. You should obtain advice immediately to ensure the correct procedure and deadline apply to your case.

Total quoted cost for the £475 application preparation: £475, excluding any separately agreed professional services or additional costs.

5. Cost of an Injunction Against a Company Statutory Demand

If a limited company has received a statutory demand and the debt is disputed, the appropriate remedy may be an injunction to restrain presentation of a winding-up petition.

A company does not normally use the personal statutory demand set-aside procedure. The court application, supporting evidence and legal procedure are different.

Professional fees: Quotation provided following an assessment of your company’s circumstances.

The quotation will depend on factors including:

• The amount and nature of the disputed debt.

• Whether a winding-up petition has already been presented.

• The urgency of the application.

• The supporting evidence required.

• Whether a hearing and legal representation are necessary.

Court fees and representation costs should be confirmed separately before proceeding.

6. Court Fees for an Injunction or Winding-Up Petition

Court fees depend on the precise application and the stage of the proceedings.

For budgeting purposes, the published court fee for a winding-up petition is currently £352, with a separate petition deposit of £2,600. These charges are additional to the professional costs of preparing and presenting the petition.

An injunction application is a separate procedure, and the court fee depends on the type of application and how it is made. The £352 winding-up petition fee should not automatically be treated as the fee for an injunction application.

The applicable fee must be confirmed before the application is filed.

7. Do You Need Legal Representation?

If you are applying to set aside a personal statutory demand, the representation requirements will depend on the procedure and hearing.

If your limited company needs an injunction to restrain a winding-up petition, the company is a separate legal entity from its directors. A director cannot automatically represent the company in court simply by virtue of being a director.

Any requirement for a solicitor, barrister or other authorised representative should be confirmed for the particular hearing. Representation fees are separate unless expressly included in your quotation.

8. Summary of Statutory Demand Fees

The following table summarises the quoted professional fees and the separate court charges discussed above.

The professional fees above are based on the prices supplied for this service. The £352 court fee and £2,600 petition deposit relate to a winding-up petition, not automatically to an injunction application. Confirm the applicable court charges and any additional professional fees before proceeding.

Contact Nigel About Statutory Demand Costs

Whether you want to send a statutory demand to recover an outstanding debt or have received a statutory demand and need advice, contact Nigel to discuss your circumstances.

An initial discussion is available at no charge. We can explain the services available, the quoted fees and the potential next steps.

Contact Nigel today for advice about sending a statutory demand, challenging a statutory demand or considering an injunction against a winding-up petition.