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What is the meaning of statutory demand?

A statutory demand is a kind of written warning from a creditor. It will state that if you don't pay your debt or come to another arrangement that's acceptable to the creditor, they may start court proceedings to make you bankrupt.

When can a statutory demand be served?

The first legal step to winding up a company or making an individual bankrupt is a statutory demand if the debt is for more than £750 or £5,000 respectively. A statutory demand is capable of being served as soon as the debt is due. A process server is recommended for personal service.

What is Section 123 1 A of the Insolvency Act 1986?

123Definition of inability to pay debts (2)A company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

What does the Insolvency Act 1986 do?

The Insolvency Act 1986 essentially governs issues relating to personal bankruptcy and Individual Voluntary Arrangements and all administrative orders relating to company insolvency.

What does offset payment mean?

(Holding back money from a payment is call "offsetting the payment" or "administrative offset.") For example, if you have a delinquent debt for a federal loan, TOP can reduce your federal tax refund or social security benefit payment to pay that debt.

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