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For any business, receiving a statutory demand can be a pivotal moment that requires immediate and well-informed action. At I&L Advisory, we understand the severity of this situation and the consequences for companies that fail to respond correctly. This guide aims to shed light on what a statutory demand is, its implications for your business, and why professional advice is not just beneficial but essential.
Understanding Statutory Demands
A statutory demand is a formal notice demanding payment of a debt that is not disputed. It’s a serious warning of more severe legal action and serves as a wake-up call to make payment promptly.
The Consequences of Not Responding to a Statutory Demand Properly
The consequences of failing to respond to a statutory demand properly are very serious. After 21 days, if no action is taken or your response is inadequate, your company can be forced into compulsory liquidation through a winding-up petition. This process not only jeopardises your business’s existence but also leaves a stain on its public image. Once a petition is filed, it can be advertised in the Gazette, alerting banks and creditors that you are in financial distress. As a result, your bank accounts are likely to be frozen, crippling your business operations immediately.
The timeline is tight, with just 18 days to present any viable defence against the demand. The urgency cannot be overstated here; the clock starts ticking the moment you receive the demand.
Why Professional Help is Invaluable
For savvy business owners, the prospect of responding to a statutory demand without professional help may seem possible, but the stakes are too high for trial and error. Ill-informed defences can make your situation worse, so it is crucial to have expert analysis and guidance. I&L Advisory specialises in assessing the whole situation, including the evidence held by the opposing side, to determine the best course of action.
Our team brings a wealth of experience in managing these matters. We offer a free consultation to discuss your prospects of setting aside the statutory demand and crafting a strategy tailored to your unique circumstances.
Protect Your Business with I&L Advisory
If your company has received a statutory demand, or you’re under threat of one, time is of the essence. Contact I&L Advisory today on 0207 6928 456.