Creditor
Congested courts the only option for debt enforcement
While the restricted use of statutory demands and winding-up petitions will provide a lifeline for many struggling companies, the move also forces creditors chasing overdue debts into an already overburdened court system. As it stands, the only remedy to enforce payment of a debt is through a High Court enforcement officer. You may send out…
Read MoreStat Ds and undisputed, but overdue invoices
Issuing a Statutory Demand (or Stat D) is an effective way to encourage prompt payment of overdue invoices and debts, but it’s not the only method. A Stat D is a formal document requesting payment of an outstanding debt within 21 days. By issuing one, you give creditors another 3 weeks to pay a debt…
Read MoreStatutory Demand vs Pre-action letter
Pre-action letters and Statutory Demands (also known as Stat Ds) are useful tools for chasing longstanding and undisputed debts. But how do they differ? Firstly, the names of the participants involved. Whoever issues the Statutory Demand is an ‘applicant,’ but the sender of pre-action letter is a ‘claimant’. Likewise, the recipient of Stat D is…
Read MoreWhy pre-action or letters before action are essential
When chasing a business or person for a debt, it’s usually a good idea to send a letter before action – also known as a pre-action letter – before commencing legal proceedings. A letter before action is a formal notice requesting payment of an outstanding debt within 14 days in accordance with Part 7 of…
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