First and foremost, do not ignore it.
A statutory demand is the start of the personal bankruptcy process, and it is much easier to reach an agreement with your creditor at this stage than when a petition has been served at court.
We often find that creditors use this to panic people into responding and to get them to come to the table. It is relatively cheap to serve and with an agent of the court attending your family home it can be quite unpleasant. However, issuing a petition is more expensive and creditors need to know they will recover something if they take this action. This is where Personal Guarantees UK can help set out your financial circumstances and produce an estimated outcome statement in the event of bankruptcy. This can be used to negotiate a sensible settlement to avoid this legal action. On nearly all occasions clients of Personal Guarantees UK end up settling for considerably less than the total amount demanded simply because their net worth when realised in bankruptcy is a comparably low figure. Remember it’s not what you owe but your ability to pay and what creditors can recover from you through legal action that matters.
If you need help with a statutory demand and negotiating a personal guaranteed demand, get in touch with us on 0333 8801791 or info@personalguaranteesuk.com or fill in the contact form on our website.
