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Statutory Demand Services - FAQs
  • Q1.   What is a Statutory Demand?

    A1.   A Statutory Demand is a formal process under the Insolvency Act 1986 for the payment or other satisfaction of a debt that is owed by a debtor to a creditor. The Statutory Demand provides the debtor with a limited amount of time (18 days) to either pay or satisfy the debt or have it set aside by the court

  • Q2.   What must the debtor do when he is issued a Statutory Demand?

    A2.   He must take action quickly if he disputes the debt in part or in full or if he accepts the debt is due but cannot afford to pay it immediately. He must not ignore the Statutory Demand or take his time dealing with it. Should he fail to deal with a Statutory Demand within the allowed 18 days you as the creditor may immediately issue a Winding-up Petition against the company (or bankruptcy Petition for an individual). This would lead to the company’s bank accounts (or personal bank accounts in Bankruptcy proceedings) being frozen prior to the court hearing date to commit the debtors company into compulsory liquidation (or being made bankrupt if an individual). But remember Statutory Demands are so successful that in 99% of cases following the issue of a statutory demand a bankruptcy petition is NEVER issued.

  • Q3.   On what grounds can a debtor have a statutory demand set aside?

    A3.   To successfully get a Statutory Demand set aside one or more of the following must be satisfied:- 1.The amount stated on the Statutory Demand is disputed. 2.The person issuing the Statutory Demand also owes money. This is called a counterclaim. 3.The person issuing the Statutory Demand is holding security that equals or exceeds the amount owing. 4.The demand was issued in error. 5.The amount owing is less than £750 6.Execution has been stayed on a judgement debt. 7.The debtor is complying with an instalment order. This would mean the debt is not actually owed as it is being paid back. 8.The creditor failed to comply with the rules and prejudiced the debtor in the process.

  • Q4.   How quickly can you prepare and issue my Statutory Demand?

    A4.   We can have your Statutory Demand ready for issue within 2 to 3 working days provided we have all the information we need. We do have an express 24 hour service (excluding weekends) for those who need to issue a Statutory Demand urgently.

  • Q5.   Do I have to pay commissions to you once the debt is collected?

    A5.   No. We are not a debt recovery company that charges expensive up front admin fees and commissions (usually 15-35%) We can however add our charges to the debt for collection.

  • Q6.   Must the debtor pay you?

    A6.   No. We do not collect money on behalf of our clients. The debtor must pay you directly.

  • Q7.   Can I speak with an adviser?

    A7.   Yes. Just complete our online form. An adviser will then review your details and call you back.

  • Q8.   I wish to issue more than one Statutory Demand, is there any discount available?

    A8.   Yes, for multiple preparation charges please contact the office on 0843 289 4352 or email

  • Q9.   I am in dispute over a debt. Can I issue a Statutory Demand?

    A9.   A Statutory Demand for payment should only be used when you have a debt which is not in dispute as the debtor may have grounds to have it set aside, however if you are certain your debt is clean and your debtor has not provided you proof the debt is not due then you can consider issuing a demand, but talk to us first.

  • Q10.   Can I add interest to my debt?

    A10.   Yes,if your terms and conditions or contract allows you to.

  • Q11.   If I choose to issue a winding up order or bankruptcy petition when must I do this?

    A11.   A petition for bankruptcy or winding up can be presented at any time between three weeks and four months after service of the Statutory Demand.

  • Q12.   What are the requirements for proof of service of Statutory Demand?

    A12.   Proof of service is effected through a sworn affidavit. Today, many people prefer to swear a “declaration” which doe not involve mention of any deity. There are a number of different ways regarding proof of service,so we suggest you call us to discuss the best option for you or you can request a copy of our help document by sending an email to

  • Q13.   I have a debt under £750 can I still issue a demand?

    A13.   Yes you can, however if you were to follow through with a bankruptcy or winding up petition the amount of the debt must be more than £750. That said the mere prospect of a bankruptcy or winding up petition does focus the mind of the debtor,which means that in 99% of cases petitions are not required to be issued. And remember your recovery charges (our fees) are added to the debt for collection.

  • Q14.   I have a debtor who has absconded can you help?

    A14.   Yes. We provide an absconded debtor service and we can normally trace a debtor in 2 to 3 days. You will need to call us on 0843 289 4352 for more information.

  • Q15.   I have a County Court judgement against a debtor. Can I still issue a Statutory Demand.

    A15.   Yes.One of the down sides of a County Court judgement is that it is not a guarantee of being paid. All too often creditors must enforce the judgement themselves which means more fees and costs to the courts, bailiffs or expensive debt recovery companies.