Does a Statutory Demand need to be reissued if it is withdrawn? But the debt remains unpaid…
Why would I reissue a statutory demand?
You can serve a statutory demand upon a company who has not paid your invoice. The company upon receipt of the statutory demand has assured you – for example – that payment will be made within 7 days. Consequently, by agreement you have agreed to withdraw the demand. However, the 7 days have now elapsed and the company has still not paid.
Do you have to reissue the statutory demand and serve it again upon the company?
Firstly, it is not a mandatory requirement to serve a statutory demand when a debt is not disputed. It is possible for a Creditor to immediately issue a petition when a debt is not paid (and not serve a statutory demand at all), where it is possible to prove to the Court that a company is unable to pay its debts as and when they fall due.
However, in the majority of occasions Creditors serve a statutory demand and allow the usual period of 21 days for a response before seeking to wind-up a company. The reason being is that it demonstrates compliance with the Insolvency Act and shows, for the purpose of the winding up proceedings, that a company is unable to pay its debts.
A further alternative – if you are seeking a debt from a company, it is possible to send a winding up letter with three days’ notice and if payment is not made during that period then a winding up petition can be pursued. It is possible for the Creditor to immediately commence winding-up proceedings. However, most Creditors look to serve a further demand – or give notice to the company prior to proceeding with a petition – as it will support the petition as evidence that the company cannot pay.