The very first thing you must do when receiving a statutory demand is pay attention. statutory demand IrelandThis is not something you can ignore or even put off for another day, these demands must be answered in a timely manner. A statutory demand is initiated by a creditor as a demand for payment, installments or security on a debt your business owes, and if left unanswered they can request bankruptcy on your company at which point the courts will appoint a receiver, examiner or liquidator to deal with the situation.
As soon as you receive this type of notification that your company is in distress you should be looking for some advice. There are insolvency consultants you could turn to for help; you may even have an in-house legal adviser who could point you in the right direction. Your answer to a statutory demand is going to be very dependent upon where your company is and if there is any hope of financial recovery. A good insolvency consultant can go through the information with you and point out areas where you could trim costs and begin covering your business debts.
Do it Yourself
Many business owners and individuals want to know if they can handle a statutory demand themselves, and in some cases you can but it will still require prompt attention. In some situations, these demands are issued but not valid, which means you can apply to the courts to have them set aside. Again, this is something you will want to address in a timely fashion, say within 18 days of receiving the statutory demand.
Set Aside Circumstances:
- You dispute the amount of the debt
- You have a counterclaim for more than the current demand against you
- Demand is below a specified sum
- You do not owe the debt
If you do not have any of the above situations to stand on you are going to have to answer the demand, preferably with the entire amount owed or the requested installments. In some cases, you will be able to secure the debt with real property that you own.
A statutory demand will not simply go away and though some creditors may use them as a scare tactic you should still take them very seriously. There are many different ways to deal with the situation and finding a qualified professional is probably your best bet. Many businesses are feeling the crunch at the moment, so do not be embarrassed to ask for help, trying to ignore the situation will only make matters worse for your business.