Stat Demands

[businessadvicepls]

Hi All,

Is it a legal requirement to have to issue any form of notification/attempt to collect a debt prior to issuing a Statutory Demand?

I and many others are in total agreement that an SD is the most effective method of collection however are their any rules/would a court see it as bad practice not to have formally tried to collect the debt first without giving any warning of impending action (being stat demand)

Ps .. I've read all the links and sites on stat demands but it does not clearly answer the options/law/protocols prior to the issue of the stat demand.

Thanks in advance

 

[Geoff T]

You should DEFINITELY try to resolve the matter of unpaid "debt" before issuing a SD...

SD only works if the debt is "clean" (which means undisputed)... look at ADR and PAP which both encourage pre-legal discussions... in essence...

Stat Demands are NOT the "easy answer", "silver bullet" answer to debt collection that many think they are!

 

[businessadvicepls]

You should DEFINITELY try to resolve the matter of unpaid "debt" before issuing a SD...

SD only works if the debt is "clean" (which means undisputed)... look at ADR and PAP which both encourage pre-legal discussions... in essence...

Stat Demands are NOT the "easy answer", "silver bullet" answer to debt collection that many think they are!

Thanks for your reply Geoff. I perhaps should have been a little clearer as the SD has already been issued. There has been no formal or written request for payment prior to the issue so am really trying to establish whether this has infact broken any rules and what sort of response it may get from a judge should it get to court with no other action having been taken already!

One assumes that this would not be looked on very favourably especially considering offers very reasonable offers of payment have been within extremely reasonable 8 week time frames!! It may help to take into consideration that the debt is minimal and well under £4k!!

 

[Rufford]

Thanks for your reply Geoff. I perhaps should have been a little clearer as the SD has already been issued. There has been no formal or written request for payment prior to the issue so am really trying to establish whether this has infact broken any rules and what sort of response it may get from a judge should it get to court with no other action having been taken already!

One assumes that this would not be looked on very favourably especially considering offers very reasonable offers of payment have been within extremely reasonable 8 week time frames!! It may help to take into consideration that the debt is minimal and well under £4k!!

SD's do work having the ability to clear the mind of the debtor. It gets the debt the their in focus. If the debt is clean (cannot be disputed) they have to pay; bust or immediately negotiate with the creditor (immediately).

 

[businessadvicepls]

SD's do work having the ability to clear the mind of the debtor. It gets the debt the their in focus. If the debt is clean (cannot be disputed) they have to pay; bust or immediately negotiate with the creditor (immediately).

Thanks for your response. Whats the general opinion if the debtors extremely reasonable offers offer is refused!? I mean reasonable within a couple of months!

 

[Naughty Vend]

Define reasonable, because I'm assuming from your reading between the lines of your postings that it is you that owes the money? Clarify please, your first posting gives the impression you are the pursuer but subsequent postings imply you are the debtor...

If indeed I am reading that right. You owe cash to another and would still have the arrogance to say you are being extremely reasonable by paying as you see fit when you are good and ready, I greatly doubt that anyone would issue a Stat Demand for no good reason and would have discussed this with you - perhaps even sent you an invoice and has provided goods or service in good faith. (More than can be said for you if this is the case). I am at the moment in the position of 'pursuer' and have sequestration papers on stand-by to serve should the Stat Demand be ignored, even though the defender made an offer personally to pay up I find that unreasonable because I've had to fight them every step of the way and they've had benefit of use of goods, profit from sale and re-investment of said monies all bank-rolled by me effectively. Yet some would think it is reasonable to now make me wait longer...

A Stat Demand is useless on disputed debts and will only have the effect Rufford has suggested but it can work to demonstrate how serious you are in diligence, also the lack of understanding of these proceedings will scare the debtor into payment. If the debt is disputed then a court hearing is indeed the next stage unless the debt is sold to the heavies for collection - always an option if it gets personal.

If you are indeed not the debtor here then accept my appology, if you are the debtor then I hope the pursuer chews your ass off...