How to Respond to a Statutory Demand

A Statutory Demand is a formal written demand for a debt over £750. It is often the first step towards winding up a company.

The 21-Day Rule

You have exactly 21 days to either pay the debt or secure a settlement. If you fail to do so, the creditor can immediately petition for your company's liquidation.

Disputing the Debt

If the debt is genuinely disputed (e.g., faulty goods), you can apply to the court to set aside the demand (injunction). You must act quickly and provide evidence of the dispute. Ignoring it is fatal.