Shortened Demand

A shortened demand is issued on a non-personal legal entity is terms of section 123(1)(e) of the Insolvency Act and is used to establish apparent insolvency. It can only be issued when the sums due exceed the prescribed limit. Such a demand cannot be served on an individual - ie a sole trader.

The demand is ordinarily sent by ordinary post, but also served by process servers (England) or Sheriff Officers (Scotland). It is the date of service that starts the period of notice, sometimes as short as three days.

It is possible to start insolvency proceedings on expiry of the demand, but care must be taken in terms of any response as this procedure relates solely to undisputed, liquid debts.

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