What do I do if I have been served with a statutory demand?

In brief

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.

More detail

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.

What next?

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