What is a statutory demand?
What is a statutory demand?

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • What is a statutory demand?
  • Coronavirus (COVID-19)
  • The statutory demand—the general position
  • The purpose of the statutory demand
  • Statutory demands—corporate insolvency
  • The form and content
  • Service
  • After service
  • Challenges
  • Statutory demands—personal insolvency
  • More...

What is a statutory demand?

This Practice Note looks at what a statutory demand is and what it seeks to achieve in both corporate and personal insolvency. It assumes that the debtor is based in England and Wales.

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic, including the Temporary Insolvency Practice Direction 2020. For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings and The Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction (April 2021). For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

The statutory demand—the general position

A statutory demand (in both corporate and personal insolvency) is a demand for a debt—either payable now, or payable at some future date—which is served on the debtor by one or more of their creditors. In both corporate and personal insolvency, failure by the debtor to pay the debt within 21 days of service of the statutory demand, satisfy/secure it to the creditor's satisfaction, or take the appropriate steps to prevent the creditor from acting further on it, will create a presumption of insolvency (on an inability to pay basis) of the debtor. Where the debtor is an individual, an

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