Statutory Demand Limit Increase

With effect from 1 October 2015, the Statutory Demand minimum claim limit in accordance with The Insolvency Act 1986 is set to increase from the current level of £750 to £5,000 and this will clearly affect debt recovery.

Unfortunately, this will be good news for debtors and not for creditors, so if you have any debts of less than £5,000 you would be well advised to get letters before action followed by Statutory Demands served well before the new limit is increased otherwise for debts of less than £5,000, the only action available will be to issue proceedings in the County Court which is not as effective in time and costs as the Statutory Demand route. This does not of course affect debts of more than £5,000.

 

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