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11 June 2009 / Michael Walsh
Issue: 7373 / Categories: Features , Procedure & practice
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Demanding times

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Michael Walsh looks at recouping funds by service of statutory demands

It is also possible to effect service by placing a notice in one or more newspapers.

Detailed guidance on this can be found in the Practice Direction: Insolvency Proceedings 2000 BCC 927 (PDIP) at para 11.2.

The importance of personal service cannot be understated because if the court finds that the creditor did not do all that is reasonable in serving the demand then it can refuse to seal the bankruptcy petition.

In practice, if a creditor has done all that he can reasonably do to bring the demand to the attention of the debtor then service can be effected by other means, such as by first class post or by putting it through a letterbox personally (see PDIP, para 11.1). 

What happens next?

After service of a demand has been effected the debtor has two choices: 
(i) he can either pay the sum demanded within 21 days after service; or
(ii) he can apply within 18 days to set the demand aside.

If the debtor

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