How we help serve statutory demands & bankruptcy petitions

October 20, 2023 - Reading time: 6 minutes

When faced with the challenge of recovering owed money, regardless of the amount, it can be highly frustrating. In order to reclaim your funds, you must provide evidence of the agreement made with the debtor, which often involves following a legal process.

This is particularly true when dealing with larger sums. If your attempts to communicate with the debtor have been unsuccessful, you may need to resort to sending them a statutory demand, followed by a bankruptcy petition. It is crucial to demonstrate that these documents have been received, and this is where process serving becomes essential.

What is a statutory demand?

A statutory demand is a legally binding document that is sent to a company or an individual who owes money. It outlines the amount owed and allows the debtor 21 days to respond. Their reply may involve agreeing to make a payment or proposing an alternative arrangement, such as a repayment plan.

There is a third option available: the debtor can request for the statutory demand to be 'set aside'. In this case, they are contesting the validity of the debt, claiming that it has already been paid or that they are not responsible for it for another reason.

If the statutory demand is set aside, it means that the debtor is seeking a court hearing. The demand is put on hold until the hearing takes place, during which a judge will determine whether the money is truly owed. If it is, the judge will enforce payment.

What about a bankruptcy petition?

If a debtor disregards the statutory demand, then you have the right to serve them a bankruptcy petition to compel them into bankruptcy. However, in order for this to be possible, they must owe you more than £5,000. This doesn't automatically mean they will be declared bankrupt; instead, you, the creditor, must petition the court, aiming to prove that the debtor is unable to repay their debts for some reason.

If successful, the debtor will be declared bankrupt. Their assets will be seized and sold to partially repay you, and they will be listed on the insolvency register. Depending on the rules of their employment, they might also lose their job.

It is important to personally serve both the statutory demand and the bankruptcy petition to ensure that the debtor receives them. Without evidence that the debtor is aware of the debt and your pursuit of repayment, it will be challenging to recover your money as the court may dismiss the case.

Serving these documents in person demonstrates to the courts that the debtor is well aware of the debt and has made no effort to come to a repayment agreement.

This is where a private investigator can be of great assistance. If you need to serve a statutory demand or a bankruptcy petition to an individual, you or your solicitor may prefer to engage an experienced private investigator to carry out a process serve.

What is process serving?

Process serving involves serving legal documents to an individual in a manner that adheres to all applicable laws. Private investigators are knowledgeable about what they can and cannot do in order to ensure proper service and protect you from legal trouble when your case eventually reaches court.

Private investigators are also highly skilled at locating debtors who are attempting to evade detection. When confronted with significant debts, many individuals go into hiding, seeking shelter with family or friends or abruptly changing addresses and finding temporary accommodations they believe cannot be traced.

However, private investigators excel at tracking down elusive debtors through various methods of investigative research. At Private Investigators UK, we understand the boundaries set by the law and strictly adhere to them, while using all available means to locate the debtor. We may serve them at their residence, workplace, or even during their regular travel routines.

Furthermore, we take great care to properly document any necessary signatures or statements, ensuring that the delivery of the statutory demand or bankruptcy petition is accurately recorded in a manner that is admissible in court. While employing a process server may entail higher costs than simply mailing the documents, you can have confidence that the recipient cannot evade them. Utilizing a private investigator as a process server is more cost-effective, as it significantly increases the likelihood of receiving payment.

We provide comprehensive process serving services, extending beyond the handling of statutory demands and bankruptcy petitions... Our expertise covers a broad spectrum, including serving divorce papers, non-molestation orders, and various other important documents. We cater to both individuals involved in specific cases as well as solicitors managing a substantial caseload.

We offer free quotes for all work. When getting in touch with us for a quote, please be sure to specify the location (post code) that you require us to work at, along with any other details relating to your case. We will do our best to assess the situation and provide a free, no obligation quote.