Bankruptcy Laws and Statutory Demand
Statutory Demand
A debtor is served a legal notice from a creditor's solicitor called a statutory demand, which gives them 21 days in which to settle their debt. After which, the issuer of the statutory demand may start the process of filing for Bankruptcy.
To avoid Bankruptcy at this point you must get the statutory demand set aside.
According to Bankruptcy laws, you have to satisfy the following criteria in order to get a statutory demand set aside. Amongst others, reason for this may include:
- A dispute of the amount on the statutory demand
- The statutory demand was made in error
- The amount is less than £750
- The creditor didn't follow the rules and procedures in the process.