Alternative Procedures for Debt Claims

Question 1

Requirements for serving a statutory demand upon an individual

Answer 1

More than £5k, liquidated sum, debtor unable to pay or has no reasonable prospect of being able to pay

Question 2

Two ways to demonstrate that the debtor is unable to pay

Answer 2

Failure to comply with a statutory demand or when a judgment has been obtained against the debtor and despite attempts to enforce it remains unsatisfied

Question 3

Four grounds for setting aside a statutory demand

Answer 3

Debtor has a counterclaim, set-off or cross-demand which equals or exceeds the debt; the debt is disputed on substantial ground; the creditor holds some security in respect of the debt which equals or exceeds the full amount; the court is satisfied on other grounds that the demand ought to be set aside

Question 4

Four grounds to demonstrate that a company is unable to pay its debts

Answer 4

Failure to comply with a statutory demand or when a judgment has been obtained against the company and despite attempts to enforce it remains unsatisfied or you have evidence that the company is unable to pay its debts or you have evidence that the value of the company’s assets is less than the amount of its liabilities

Question 5

Minimum value of debt to statutory demand a company

Answer 5

£750

Question 6

Can a company apply to set aside a statutory demand?

Answer 6

No

Question 7

Grounds for an injunction to restrain the creditor from presenting/advertising a WUP

Answer 7

Winding up would be an abuse of process which is when there is a bona fide and substantial dispute over the debt