To deal with debts can go a little critical if you can’t manage the repayment processing. Additionally, a warning of statutory demands from the creditors might add to the financial stress. Usually, creditors send statutory demands when they’re planning to make their debtors bankrupt. Well, a statutory demand is the first step towards bankruptcy.
And, it’s not a good idea to ignore the statutory demands or official warnings from the creditors. Debt Advice Help is here to drag you out from the whirlpool of debt and statutory demands with the right reviving strategy and financial advice from our experts. In case, you don’t want to go bankrupt, then Debt Advice Help is at your rescue.
Statutory Demand: What is it?
This is nothing but a written format of a warning from the creditor stating that they might apply for your bankruptcy. In case, you don’t take any action against the warning, the creditors assume that you don’t have any objection. Otherwise, you need to contact the creditor about the repayment or settlement procedure if you don’t want to indulge in the bankruptcy process.
Moreover, if you fail to address your creditor within the next twenty-one days from the date the demand has been issued, then it can introduce a grave danger to you. You can pay the debt in full within this period or talk to your creditor for debt insolvency processes or writing them off.
An experienced financial adviser can help you out the best in such a crucial situation. Debt Advice Help and its skilled and experienced professionals can advise you on the best step regarding your finances. In addition to this, we would talk to your creditor and convince them to take the appropriate steps when it comes to statutory demands or bankruptcy.
How can Statutory Demands Hamper your Lifestyle?
The creditors offer you a deadline of twenty-one days after issuing the statutory demand in your name. You shouldn’t overlook the warning unless or until you don’t want to go bankrupt. In case, you do nothing regarding the stat demands, then there are higher chances that the creditors would start the process by applying to the court after twenty-one days.
You can get the statutory demands cancelled by contacting the creditor. If you’re unable to pay the outstanding debt, then check out if bankruptcy is the only option left for you. Ask the experts of Debt Advice Help after discussing your finances to know what will be the best option when you’re receiving statutory demands from the creditor. Apart from this, our in-house professionals would talk to your creditors.
A statutory demand is a format where all your debts are mentioned in detail. You can receive the statutory demand by post. Moreover, the creditor must have declared the account defaulted and the term ‘statutory demand’ should be mentioned. Contact us as soon as possible when you receive such a stat demand from your creditors.
Read Also: Sequestration
Ways to Address Statutory Demands
Well, there is not just one way to get rid of the statutory demand 一 the threat of bankruptcy. There are numerous possible ways to set aside statutory demand and grab a second chance towards your finances. However, creditors would turn you bankrupt within the next four months, if you don’t take further action.
Our financial experts at Debt Advice Help have found the following strategies to eliminate the risks associated with stat demands:
Challenge the Statutory Demand
In case, you think that the statutory demand is worth challenging, then you can apply to cancel the demand. If you don’t owe any money to the creditor or there’s any mistake, then set aside the demand is the best option. You need to challenge the demand within eighteen days in court. And, when the court agrees to the cancellation process, your creditor doesn’t have the authority to initiate the bankruptcy.
Make the Full Payment towards the Outstanding Debt
This is another easy way to deal with a statutory demand. If the debt hasn’t turned into a statute barred and you have enough money to pay, then this option is a risk-free policy. Talk to your creditor and settle all their demands.
When you can Afford Smaller Instalments
Debtors might struggle to pay the debt in full and that’s why the debt has gone beyond statutory demands. However, if you can pay off the debt with small instalments, then check if your creditors would accept that. Talk to the experts of Debt Advice Help for a clear understanding between you and your creditors. This is a reliable way of saving yourself from bankruptcy.
Is it Possible to Write off the Debt?
Only your creditors can answer this by judging your financial condition. If you have to represent yourself with enough evidence and proper guidance, then Debt Advice Help is here. We would explain your financial situation to your creditor and get them to realize that you have literally nothing to pay them.
Opt for an Individual Voluntary Arrangement
You can escape heft payments with this option. Depending upon the place you reside and the financial condition of yours, you can apply for an Individual Voluntary Arrangement. However, this is necessary to have a regular source of income before you sign up for an IVA process. This strategy settles the debt with a legally binding agreement and might benefit your finances rather than bankruptcy. Contact us to know whether IVA would be beneficial for you.
Secure Properties against Debts
To avoid bankruptcy, you can recommend your creditors to secure your properties against the debt. Your debt will be written off by selling your home or assets in the future. However, discuss your voluntary charge with the financial adviser. Discover the risks and benefits before going with a firm decision.
Reduce the Outstanding Debt
Your creditor can’t process your bankruptcy when the outstanding debt value is less than £5000. So, if you owe something bigger than this, then make a payment towards your debt. Once the debt becomes less than £5000 you can avoid bankruptcy.
Your financial situation might not go compatible with any of the above-mentioned alternatives. Then, you have to accept bankruptcy. Inform the creditor that you have acknowledged the stat demand, or else, get in touch with Debt Advice Help.
How can We Help you with Stat Demand?
We, at Debt Advice Help, understand your financial tantrum regarding the debts and repayments. If not dealt with earlier actions, the consequences can go bitter. Our experts would guide you on how to apply for cancelling the statutory demand. Additionally, you will find the right way to discuss your finances with your creditor through us.
We would settle the right payment scheme or debt writing-off policy after inspecting your condition. Whether an IVA can relieve you from such monetary stresses or it’s the bankruptcy, discover the best bet with Debt Advice Help.
Share Your Queries with Debt Advice Help, today!
Statutory demands might deprive you of your peaceful sleep and turn your days into a nightmare. And, it’s not a wise decision to overlook them. Take the right step by getting in touch with Debt Advice Help. Our professionals have a profound knowledge of handling stat demands with the most wisdom.
Therefore, contact us by dialing. Or, just drop a mail at our official email address. We would fix in-person appointments with our financial advisers quickly. Allow us to discover the right financial solutions for you, so that you can lead a stress-free life.