A statutory demand can be used to ask for payment of a debt from an individual or company.
When an individual or company gets a statutory demand, they have 21 days to either:
- settle the debt
- reach an agreement to pay
If there’s no agreement, whoever issues the statutory demand can start:
- bankruptcy proceedings (against individuals who owe £750 or more)
- winding up a limited company that owes more than £750
You must fill in a different application form for a statutory demand in Scotland.