Statutory demands

If the debtor does not pay the statutory demand and you intend to carry on with debt-recovery proceedings, you will need to prove you have served the demand. One option is to employ a process server. A process server serves court and legal documents on behalf of:

• solicitors
• lawyers
• local authorities
• government agencies
• companies
• private individuals

If you're intending to present a petition for a bankruptcy order based on a statutory demand, the total debt must be more than £5,000. If you're intending to present a petition for a winding-up order based on a statutory demand, the total debt must be more than £750. However, a number of creditors for smaller amounts can put their claims together to reach this minimum.

You can ask the High Court to make a bankruptcy order or winding-up order:

• if the debtor does not settle the debt or reach an agreement for payment within 21 days from the date of service of the statutory demand, or 
• if the debtor is an individual, they do not ask the Court to set aside (dismiss) the demand within 18 days from the date of service of the statutory demand, or 
• if the debtor is a company, an injunction is not sought to prevent the company being wound up or placed in administration