Dealing with a statutory demand
A statutory demand should be served personally on the client by a sheriff officer or messenger-at-arms together with an additional copy of the demand.
If your client receives a statutory demand,1 they have the option of admitting the debt or denying the debt. Unlike a charge for payment, a creditor does not need to have taken the client to court for the debt. They can simply serve a statutory demand and wait until the 21 days expire, constituting apparent insolvency, then petition for the client’s sequestration.
The easiest way to deal with a statutory demand is to deny the debt and send the form back to the creditor. This sent be done by recorded delivery and arrive at the creditor no later than three weeks after the date of service. In this scenario, the creditor must proceed through the normal court process allowing the client to deal with it according to the court regulations.
If your client does not respond, the creditor begins sequestration proceedings through the sheriff court. So, ensure that your client responds accordingly within the set time.