02 Mar What is a statutory demand?
If a creditor is owed money, they can issue a statutory demand. A statutory demand is a formal written request that a debt must be paid.
An individual or business that receives a statutory demand has 21 days to:
- settle the debt
- secure the debt – reach an agreement for payment
If you want to ask the court to ‘set aside’ (dismiss) the demand, this must be done within 18 days of the date the statutory demand was served.
If the debt is for over £750 and is not paid, then the creditor may present a petition to the court for a bankruptcy order for personal debts, including debts incurred as a sole trader or when trading in partnership with someone else, or a winding-up order for debts of a limited company.