Guidance

Director information hub: Statutory demands

A statutory demand is a formal written demand for payment of a debt within 21 days.

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When a company owes money to a creditor, the creditor can make a statutory demand for payment of the debt. Statutory demands can also be made against individuals.

Making a statutory demand to a company

When you make a statutory demand, or someone makes one against your company, the company has 21 days to:

  • pay the debt 
  • reach an agreement to pay 

If there is no response after 21 days and the debt is over £750, an application can be made to wind the company up.

Failure to respond

Failure to respond to a statutory demand can have consequences for any company that wishes to continue trading. If you do not deal with a statutory demand you risk:

  • a winding-up petition being issued against the company
  • credit being affected when others become aware of the demand

You should consider seeking legal advice if you receive a statutory demand.

Challenging statutory demands 

You cannot challenge a statutory demand made against companies.  

A company can apply to court to stop creditors from applying to wind the company up. However, this has to be done within 21 days of getting the statutory demand.

Read more about responding to a statutory demand.

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Updates to this page

Published 26 September 2024

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