In short
Two different instruments with different purposes — and the circumstances in which one of them is the wrong choice.
Different purposes
A county court claim is a process for determining liability and obtaining judgment. A statutory demand is a step within the insolvency framework and is not a mechanism for resolving a contested claim.
Disputed debts
Insolvency processes are not an appropriate route where a debt is genuinely disputed on substantial grounds. Using them in those circumstances can lead to adverse costs consequences and, in some cases, injunctive relief against the creditor.
Choosing between them
The choice depends on whether liability is really in issue, the debtor's solvency, the value at stake, timescales and the commercial objective. It should follow an assessment, not a preference.
Frequently asked
- Is a statutory demand faster?
- It can be, in the right case. In the wrong case it is slower, more expensive and counterproductive.
Sources & references
- Civil Procedure Rules and the Practice Direction on Pre-Action Conduct and Protocols
- Pre-Action Protocol for Debt Claims
- Late Payment of Commercial Debts (Interest) Act 1998
- [INSERT ADDITIONAL VERIFIED SOURCES USED FOR THIS GUIDE]
This guide is general information only and does not constitute legal advice. Procedures described relate principally to England and Wales. Every matter is assessed on its own facts and contractual documentation.