Statutory demands
A powerful debt recovery tool, and a risky one if it’s used wrongly.
How we can help
- Advising whether a statutory demand is appropriate for your debt
- Preparing and serving the demand correctly
- Advising on the consequences if it is not complied with
- Acting where a demand has been served on your business
- Applying to set aside or restrain a demand that should not have been made
- Advising on the costs risk of getting this wrong
What happens next
- Tell us about the debt and whether the debtor has ever disputed it.
- We advise whether a demand is the right tool or whether it would backfire.
- We prepare and serve it, or respond to one served on you.
Fees for this work
Fixed fee for preparing and serving a demand. Applications to set aside are charged hourly.
Common questions
When shouldn't we use one?
Where the debt is genuinely disputed on substantial grounds, or where there is a real cross-claim. Using insolvency procedures to pursue a disputed debt can result in the demand being set aside with costs against you, and occasionally an injunction.
What happens if they ignore it?
Non-compliance within the statutory period is evidence of inability to pay, which can found a winding up or bankruptcy petition. That is what gives the demand its force — and why it frequently produces payment quickly.
We've received one. What do we do?
Act immediately. The period to apply to set aside is short, and once a petition is presented and advertised the damage to banking and supplier relationships can be severe even if you ultimately succeed.
Is there a minimum amount?
There are statutory thresholds, and they differ depending on whether the debtor is an individual or a company. We will confirm the current position before proceeding.
Tell us what's happened
Confidential, reviewed by a solicitor, answered within one working day.