Serving a Statutory Demand and Recovering the Full Debt of £22,000 Together with Costs and Interest
Challenge
We were contacted by a commercial client who was owed money for services provided to another business. Despite numerous requests from the client to the debtor, the debtor failed to make payment – despite still trading.
Our client wanted a quick and effective way to recover the debt where their costs would also be recoverable. Ultimately, why should a creditor be out of pocket to collect what is owed to them and through no fault of their own.
Our Approach
After conversations between the client and debtor broke down and after our client considered the various options for recovery (either money claim proceedings or insolvency proceedings) we were instructed via our portal to serve a statutory demand. It took our client less than two minutes to instruct us and once the submission was sent, our statutory demand was immediately drafted and sent to the process server.
Our demand was personally served on the debtor within a few days. Following service, the debtor made payment of the invoice sum only, but refused to pay the interests and costs. After reminding the debtor that our client is entitled to its costs, and interest, and that proceedings would follow for these balances if not paid, the debtor made payment in full.
Outcome
In this case, the statutory demand had the desired effect and resulted in a near-instant payment. Whilst the interest and costs element required a bit of extra communication, our efforts were well-received and we recovered the full amount for our client.
To instruct us to serve a statutory demand, we charge just £150 (plus VAT) together with the process server’s fee of £108. Both of these amounts are automatically added on to the debt balance and demanded from the debtor. As Debt-Claims do not charge any commission or recovery fee, our client kept the full balance recovered together with the interest and costs.
If you or your business is experiencing a similar challenge to this please get in touch at enquiries@debt-claims.com and we’ll be able to support your claim and help you recover what’s yours.
