A statutory demand is a type of warning letter sent by a creditor owed at least £750 requiring the debt to be settled within 21 days.
If you receive a statutory demand you have 21 days to respond. To respond, you must do one of the following:
- Pay the debt
- Negotiate a payment plan with the creditor
- Consider putting your company into Administration
- Take steps to liquidate your company yourself
- Do nothing and risk a winding up petition being filed at court
An unsatisfied statutory demand is evidence that the company cannot pay its debts as they fall due and is insolvent.
If you receive a statutory demand you should seek immediate advice – the earlier you act the more options are likely to be available to you. Contact our experts today on 0800 254 5494