A statutory demand is a special type of written request from a creditor (someone who is owed money) for payment of a debt.
The person or company that receives the demand has 21 days to settle the debt or 18 days to ask the court to set aside (dismiss) the demand.
The creditor may present a petition to court for a:
- bankruptcy order if after 21 days, a statutory demand claiming the debt which is equal to or exceeds £750; or
- winding-up order if, after 21 days, a statutory demand claiming the debt exceeds £750
is not: paid
- secured (an agreement reached for payment), or
- set aside.
- For more information on this useful topic and help to recover money you may be owed contact us at TM law for our 30+ years of expertise on debt matters
