Individual – Statutory Demands
To commence insolvency proceedings against an individual you first need to ensure the debt owed to you is suitable for insolvency proceedings:-
- Firstly the debt owed to you must be over £5,000.00
- Secondly, the debt must not be disputed (you could face having to pay the debtor’s costs if the debtor can prove that the debt is disputed on ground which appear to the court to be substantial.)
Once you have confirmed the debt is suitable for insolvency proceedings, the first step is to serve a Statutory Demand. This will set out the debt owed to you and details of the
creditor and how payment can be made.
The Statutory Demand will need to be personally served on the debtor. This is very important as if you proceed further along the process you will need to prove service of the Demand.
The debtor will have 21 days from the date the demand is served to deal with the demand. In the event they do not pay or apply to set the Demand aside then the next step would be to proceed with a Bankruptcy Petition.