What is a statutory demand?
A statutory demand is not a court order, but it starts a clock that can end in bankruptcy. The deadlines are short and fixed — so this is a letter to act on today.
Applies to: England & Wales
What to do now
- Note the date you received it and count 18 days — the letter checker does this.
- Call a free debt adviser today: National Debtline, StepChange or Citizens Advice.
- If you dispute the debt, apply to set the demand aside within 18 days. If you owe it, contact the creditor about payment or an arrangement before 21 days pass.
What it is — and what it is not
A statutory demand is a document a creditor serves under insolvency law. It is not issued by a court and does not appear on your credit file. But if it is not dealt with, the creditor can use it as the basis for a bankruptcy petition — and a petition can only be presented for debts of at least £5,000.
Applying to set it aside
You can ask the court to set the demand aside — usually within 18 days of service — on grounds such as: you dispute the debt on substantial grounds; you have a counterclaim or set-off against the creditor; the creditor holds security worth at least the full debt, or has not properly disclosed its security in the demand; or there is another reason it should not stand. If the court sets it aside, the creditor cannot rely on it.
If you do owe the money
Contact the creditor before the 21 days run out and propose payment or an arrangement in writing. If the debts are too large to repay, an adviser can explain options such as an IVA, a Debt Relief Order or Breathing Space, and what bankruptcy would mean.
Statutory demands for judgment debts
A creditor with a CCJ can also serve a statutory demand. The court will not usually reopen whether the judgment debt is owed, so getting advice quickly about payment or other options matters even more.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
How long do I have to respond to a statutory demand?
You normally have 18 days from service to apply to court to set it aside, and the creditor can apply to make you bankrupt if the demand is not paid, secured or compounded after 21 days.
Can I be made bankrupt for less than £5,000?
No. A creditor, or creditors together, can only present a bankruptcy petition for unsecured debts totalling at least £5,000.
Is a statutory demand the same as a court claim?
No. A court claim asks the County Court to order you to pay. A statutory demand is a step under insolvency law that can lead to a bankruptcy petition.