Watford Solicitors

When to use a Statutory Demand ?

A Statutory demand is a written demand in statutory form for the payment of a debt owed by a debtor. It is not a court document so the creditor must serve it and prove service.

The document tells the debtor when the amount required must be paid, the next steps if it is ignored, contact details of the solicitor or creditor, and specific rights if the demand is challenged.

In order to comply with the statutory demand, the debtor should either pay the debt in full, make an agreement with the creditor to pay it, or challenge the demand in order to get it cancelled.

If debtor fails to comply for 3 weeks, it can become the basis of a bankruptcy or insolvency petition.