Statutory demand
Legal & insolvencyA formal legal demand for payment that can be a step before bankruptcy action.
Overview
Statutory demands are used for certain debts and have strict response times.
Ignoring one can lead to court action or insolvency proceedings.
Why it matters
- It is a serious escalation of debt recovery.
- It can lead to bankruptcy if not resolved.
- It signals urgent action is needed.
FAQs
Does a statutory demand appear on my credit report?
Not directly, but related court action can affect your credit file.
What should I do if I receive one?
Seek advice quickly and respond within the required timeframe.
Related terms
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