Make and serve a statutory demand, or challenge one

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1. When you can make a statutory demand

You can make a statutory demand to ask for payment of a debt from an individual or company.

Anyone who鈥檚 owed money (the 鈥榗reditor鈥�) can make a statutory demand. You do not need a lawyer.

If the debt鈥檚 over 6 years old, you cannot usually make a statutory demand. You can get legal advice instead.

There may be faster ways of getting smaller debts paid than making a statutory demand.

When the individual or company that owes you money (the 鈥榙ebtor鈥�) receives a statutory demand, they have 21 days to either:

  • pay the debt
  • reach an agreement to pay

You can apply to bankrupt your debtor or close (鈥榳ind up鈥�) their company if they do not respond to the statutory demand within 21 days.

2. Statutory demand forms

Choose the form you need, fill it in and deliver (鈥榮erve鈥�) it to the individual or company that owes you money.

You do not need to send a separate letter.

Serve a demand on an individual (including partners in a partnership)

Which form you need depends on whether you鈥檙e collecting a debt that鈥檚:

If you鈥檙e serving a demand on a business partnership, you need to download and fill in a form for each partner.

Serve a demand on a limited company

Use statutory demand form SD 1.

If you鈥檙e in Scotland

You must use a different form to make a statutory demand .

3. How to serve a statutory demand

You must deliver (鈥榮erve鈥�) the statutory demand form by:

  • giving it to the individual who owes you money (you should try all their known addresses)
  • leaving it at the registered office of the company or partnership that owes money (or the main place of business if they do not have a registered office)
  • giving it to the company鈥檚 director, company secretary, manager or principal officer
  • get a 鈥榩rocess server鈥� to serve it for you (a solicitor can arrange this)

You can only send it by registered post or put it through a letterbox if it cannot be delivered in person.

Records you must keep

You must keep a copy of the statutory demand and anything that confirms:

  • the time and date you served the statutory demand, for example a postage receipt or confirmation from your process server
  • the debtor has received the statutory demand

You鈥檒l need this information if your demand is ignored.

If your demand is ignored

If your debtor does not pay the debt or agree to your statutory demand within 21 days, you can:

You have 4 months to apply to bankrupt or wind up your debtor. If you鈥檙e late, explain why to the court named on the statutory demand.

Serve a statutory demand abroad

Get legal help if you want to serve a statutory demand in another country.

You need to serve a statutory demand according to local laws but also according to the UK rules.

4. Challenge a statutory demand

If you do not agree with a statutory demand you鈥檝e been given, you can apply to challenge it and get it 鈥榮et aside鈥�.

You can be made bankrupt or your company wound up if you ignore a statutory demand.

You must apply to the court named on your statutory demand. Contact a solicitor or your nearest county court if you鈥檙e not sure where to send your application.

You cannot challenge a statutory demand if it was served on a company. You can apply to stop your creditors from winding up your company instead.

Any bankruptcy petitions the creditor has already filed against you will usually be suspended until the court reaches a decision.

The court will not usually set aside a statutory demand if it was served on you following the judgment of another court unless, for example:

  • you think the creditor owes you the same amount as your debt, or more
  • the amount on the statutory demand is secured

Deadlines

You must apply to challenge the statutory demand within either:

  • 18 days if you were in the UK when you got the statutory demand
  • 21 to 34 days if you were in another country when you got the statutory demand - check the for specific deadlines

If the deadline is during a weekend or on a bank holiday, you have until the next day the court is open to apply.

You might be able to get an extension in some circumstances - contact the court to find out what these are.

How to apply

Download and fill in form IAA.

Make 3 copies of the completed form and either post them to the court named on your statutory demand or give them to the court in person.

What happens next

You鈥檒l usually hear back from the court within 10 working days of applying.

If the court does not agree with your application, it can give the creditor permission to issue a bankruptcy petition against you.

If the court agrees with your application, your case will be passed on to a bankruptcy registrar. They鈥檒l look at your case and arrange a hearing.

What happens at the hearing

Both sides will present their case to a registrar or judge. They鈥檒l either make a decision then, or ask you and the other party to give more evidence at another hearing.

You鈥檒l usually get a decision at the end of the final hearing.

If you win your case, you鈥檒l get an order from the court setting aside the statutory demand. The deadline for paying the debt will be suspended.

If you lose, you鈥檒l have to pay back your debt within the 21 day time limit. The creditor can apply to bankrupt you if you do not pay in time and your debt is 拢5,000 or more.

5. Contact the Insolvency Service

Contact the Insolvency Enquiry Line for information about delivering and challenging a statutory demand.

Insolvency Enquiry Line
[email protected]
Telephone: 0300 678 0015
Monday to Thursday, 9am to 5pm
Friday, 9am to 3pm
Find out about call charges

You can also use the to contact the Insolvency Enquiry Line.