Dealing with Debtors

We are often asked the difference between a statutory demand and a charging order when dealing with debts. Our understanding is as follows:

For debts over £500 a statutory demand can be served. In the event that the debtor does not apply to set aside the demand then bankruptcy proceedings can begin against the debtor. A statutory demand often provokes payment or at least dialogue.

In contrast a charging order is placed against a property. Once obtained it can be enforced by an application for an order of sale. Once obtained most creditors make an application for a restriction to ensure the property does not get sold without the consent of the creditor.

Landlord Assist provide free, no obligation advice and can be contacted on 08707 662288