When either a company or an individual is served with a statutory demand, the warning bells should be ringing, as failure to act on that demand within 21 days (for debtors based in the jurisdiction of England and Wales) could lead to winding-up and bankruptcy proceedings being commenced against that company or individual, respectively. Where a debt is genuinely due from the debtor to the creditor, then steps should be taken to either pay the debt, or make arrangements with the creditor to settle it, failing which insolvency proceedings could be commenced. There may be situations where a statutory demand is served on the debtor when it should not have been (ie because the debt is not due, or the debtor has a counter/cross-claim which equals or exceeds the creditor's claims, or for some other substantial reason). Where this situation arises, the debtor will need to take urgent steps to ensure that the insolvency proceedings are not commenced. Subject to any time constraints, these steps might include the following: • contacting the creditor to fully set out why