Dealing with your limited company's debts
Responding to a statutory demand
You have 21 days to respond to a statutory demand.
To respond, you must do one of the following:
- pay the debt
- reach an agreement with the creditor to pay the debt in the future, for example by using a Company Voluntary Arrangement
- put your company into administration
- apply to liquidate (‘wind up’) your company yourself
Your creditors can apply to wind up your company if you do not respond to the statutory demand within 21 days.
Stop your creditors from applying to wind up your company
You can apply to the court to stop (‘restrain’) your creditors from applying to wind up your company. You must do this within 21 days of getting the statutory demand.
Download and fill in application form IAA.
Which court you apply to depends on how much money shareholders have paid into your company by buying shares (‘paid up share capital’).
Check the Companies House register to find out your company’s paid up share capital.
Your paid up share capital is less than £120,000
Use the court finder to find a court dealing with insolvency. You must use the court nearest your company’s registered office.
Your paid up share capital is more than £120,000
You must apply to the High Court.
The High Court
Companies Court
7 Rolls Buildings
Fetter Lane
London
EC4A 1NL