Gannons secures swift recovery of €40,000 payment for client using Statutory Demand

When our client, a well-established provider of aviation technology solutions, came to Gannons, they were owed more than €40,000 by one of their airline clients. Despite numerous efforts to resolve the matter directly, the debtor had failed to engage or make any payment.

Drawing on our extensive experience in commercial debt recovery, we advised our client that the most effective way forward in the circumstances would be to issue a Statutory Demand, a high-impact legal step that often succeeds where informal chasing fails.

What is a Statutory Demand?

A Statutory Demand sent to a company is a formal written request for payment of a debt exceeding £750. It gives the debtor 21 days to settle the debt or face the risk of winding-up proceedings. In this case, the demand was issued under section 123(1)(a) of the Insolvency Act 1986, which provides that a company is deemed unable to pay its debts if it fails to comply with a valid Statutory Demand within 21 days.

You can learn more about the proper use and potential abuse of Statutory Demands on our dedicated Statutory Demand page.

How did we help?

We prepared a comprehensive Statutory Demand, clearly setting out the sums owed and enclosed supporting documentation (including invoices, correspondence and the underlying contract between the parties) to evidence the legitimacy of the debt and discourage any dispute.

We then arranged for the demand to be personally served on the debtor at their registered office using a reliable process server with whom we work with regularly.

Our strategy was simple but effective. Place the debtor under immediate pressure while ensuring the Statutory Demand complied fully with insolvency rules.

The outcome? Within days of personal service, the debtor contacted us and arranged for full payment of the outstanding sum. There was no need for court action, and there was no further delay.

Why clients choose Gannons?

At Gannons, we combine deep technical knowledge of insolvency law with commercial practicality. Our disputes team understands how and when to use Statutory Demands to maximum effect, always carefully and always strategically.

Clients trust us because:

• We act fast and with precision.
• We understand the commercial realities of debt recovery.
• We protect our clients from unnecessary litigation costs.
• We’re honest and straight-talking in our advice.

Whether you're facing a non-paying customer, a disputed invoice, or an overdue debt, we’ll assess your situation and guide you on the most effective next steps.

Contact Gannons for practical, results-driven advice from specialists who know how to get things moving.