Statutory demands
Statutory demands for payment for creditors and debtors
1. Overview
A statutory demand can be used to ask for payment of a debt from an individual or company.
When an individual or company gets a statutory demand, they have 21 days to either:
- settle the debt
- reach an agreement to pay
If there’s no agreement, whoever issues the statutory demand can start:
- bankruptcy proceedings (against individuals who owe £750 or more)
- winding up a limited company that owes more than £750
You must fill in a different application form for a statutory demand in Scotland.
2. Statutory demand forms
Choose the form for your circumstances, fill it in, and deliver it to the individual or company that owes you money.
You don't need to write and deliver a separate demand letter - just deliver the right statutory demand form.
Forms to send to individuals (including self-employed people)
Use one of these 3 statutory demand forms:
Download 'Form 6.1 Â for a specific amount payable now' (DOC, 50KB)
Download 'Form 6.3 Â for debts payable in the future' (DOC, 49KB)
Form to send to limited companies
Use statutory demand Form 4.1
3. How to serve a statutory demand
You must make sure the person or company who owes money know that they have the statutory demand.
You should either:
- deliver (‘serve’) it in person (to an individual, a company director, an employee )
- get a ‘process server’ to serve it for you (a solicitor can arrange this)
If it can't be delivered in person, you can send it by registered post or put it through a letterbox.
If your demand is ignored
You must fill in a form confirming that you ‘served’ the demand properly.
Use the form as part of your application to start:
- bankruptcy proceedings (for individuals)
- winding up proceedings (for limited companies)
The demand was served personally (by you or someone else)
Download 'Form 6.11 - for a certificate of personal service of statutory demand' (DOC, 40KB)
The demand was served in another way (eg by post)
Download 'Form 6.12 Â for substituted service of statutory demand' (DOC, 47KB)
The person who served the statutory demand must sign the form.
4. Challenge a statutory demand
If you’ve been given a statutory demand and you don’t agree with it, you can apply to court to have it ‘set aside’ (cancelled).
For individuals
You must apply to court to challenge it within 18 days (22 days or more if you were abroad when you got it).
Fill in Form 6.4 Â application to set aside a statutory demand (DOC, 40KB) and Form 6.5 Â statement of truth (DOC, 40KB).
Present the forms at a court - a solicitor or local county court can tell you which one to use.
If the court accepts your reasons, it will arrange a hearing to discuss the debt. The deadline for paying the debt will be suspended.
If your court hearing is unsuccessful, the time period for you to pay back the debt will restart. If you don’t pay in time and your debt is £750 or more, the creditor can apply to bankrupt you.
For limited companies
There are different steps to defend a statutory demand if you’re a limited company.
5. Contact The Insolvency Service
Contact the Insolvency Enquiry Line for information about delivering and challenging a statutory demand.
Insolvency Enquiry Line
insolvency.enquiryline@insolvency.gsi.gov.uk
Telephone: 0845 602 9848
Monday to Friday, 8am to 5pm
Find out about call charges