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  • 28 Jan 2022

    Can I issue a Statutory Demand to recover outstanding money from a Company?

    There is nothing preventing you from serving a Statutory Demand on a Company in order to recover monies due and owing to you. The initial restrictions imposed following the Coronavirus Pandemic have been lifted. A Statutory Demand should only be served if the debt is £10,000 or more.The Statutory Demand is the fore runner to the issue of a Winding Up Petition.Under the Corporate Insolvency and Government’s Act 2020 (Coronavirus) amendment to Schedule 10 (Regulations) 2021 you are able to present a Winding Up Petition provided a Creditor has:
    • Shown that the debt is liquidated and has fallen due for payment
    •  and that the Creditor has delivered a written Notice to the Debtor Company containing a Statement seeking proposals for the payment of the debt to the Creditor’s satisfaction.
    • At the end of 21 days the Debtor Company has not made proposals for payment or alternatively make satisfactory proposals.
    • The debt due is more than £10,000.
    Presenting a Winding Up Petition can be a difficult process and legal advice should be sought at the earliest opportunity. Unfortunately, you are not able to issue a Winding Up Petition prior to the 31st of March 2022 in relation to any commercial rent arrears.

    Should you have any queries concerning this please contact Kally Singh at kally.singh@hegarty.co.uk.

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