Statutory Demand Advice

At Fast Insolvency, we provide urgent, affordable advice to companies and directors who have received a statutory demand in . 

This legal warning is often the first step creditors take before issuing a winding-up petition, making it critical to act quickly.

We offer rapid, low-cost advice on responding to statutory demands and protecting your business.

Contact us today for free, confidential guidance from a licensed insolvency practitioner.

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What Is a Statutory Demand?

A statutory demand is a formal legal document issued by a creditor demanding payment of a debt of £750 or more in .

It gives a company or individual 21 days to pay, dispute, or come to an arrangement, otherwise, the creditor may apply to the court to force compulsory liquidation in .

How Much Does Statutory Demand Advice Cost?

Statutory demand advice in costs between £750 and £2,500, depending on how complex the case is and what action is required.

At Fast Insolvency, we provide affordable, fixed-fee advice in with no hidden charges. Basic guidance and document review can start from £750.

Full legal response preparation, dispute handling, or representation for setting aside the demand may cost up to £2,500 in .

If your company needs to enter a formal insolvency procedure, such as a Company Voluntary Arrangement (CVA) or Creditors’ Voluntary Liquidation (CVL) in , those services carry additional fees, which we clearly outline before proceeding.

Contact us today for a free consultation and a fixed quote tailored to your situation.

Why Have I Received a Statutory Demand?

You’ve likely received a statutory demand because a creditor believes your company has failed to repay a legally due debt.

It’s often used when other attempts, such as reminders or court action, have failed.

Is a Statutory Demand Legally Binding?

It is a formal step under UK insolvency law and must be taken seriously.

If ignored, it can lead to your company being wound up by the court in .

What Happens If I Ignore It?

If you take no action within 21 days, the creditor can apply for a winding-up petition in .

This can result in compulsory liquidation in , asset freezing, and the closure of your company.

How Do I Respond to a Statutory Demand?

You must act within 21 days by paying the debt in , negotiating with the creditor, or applying to set aside the demand if the debt is genuinely disputed.

Getting advice from an insolvency practitioner at this stage is strongly recommended.

Can I Dispute a Statutory Demand?

If the debt is genuinely in dispute.

You can apply to the court to set aside the demand, but you must act quickly and have clear evidence to support your claim.

Can I Negotiate with the Creditor?

You may be able to arrange a payment plan or propose a Company Voluntary Arrangement (CVA), especially if your business is viable but temporarily experiencing financial difficulties.

What Is the Deadline for Action?

You have 21 days from the date of service to take action.

Failing to respond within this timeframe allows the creditor to escalate the situation by filing a winding-up petition in .

What Is the Risk to My Company?

The main risk is compulsory liquidation in .

Your company may be closed by court order, with assets sold, employees dismissed, and directors investigated.

Will It Affect My Personal Finances?

If you’ve signed personal guarantees or committed wrongful trading, the consequences could extend to your personal finances.

Otherwise, company debts are limited to the business entity.

How Is a Statutory Demand Served?

It can be delivered in person or posted to the company’s registered office.

Proper service must be proven before the creditor can take further legal steps.

What Is the Role of the Court?

The court is not involved in issuing the statutory demand but becomes involved if you dispute it or if the creditor files a winding-up petition after the deadline.

Is It Better to Enter Voluntary Liquidation?

Choosing Creditors’ Voluntary Liquidation (CVL) gives you control over the closure process and avoids the risks of court-led action.

Can HMRC Issue a Statutory Demand?

HMRC frequently uses statutory demands as a tool to collect unpaid VAT, PAYE, or corporation tax.

They are one of the UK’s most active petitioning creditors.

What If I Don’t Owe the Debt?

If you don’t owe the amount claimed, you can challenge the demand by applying to have it set aside.

Do not ignore it, get legal or insolvency advice immediately.

Will It Affect My Creditors or Clients?

Once a statutory demand is escalated into a winding-up petition, the case is published in the London Gazette.

This may damage your business relationships and freeze your bank accounts.

Get Free Statutory Demand Advice Today

If you've received a statutory demand, time is critical.

Our licensed experts will assess your options and help you take legal steps to avoid escalation.

Contact Fast Insolvency now for free, same-day advice and stop the situation before it becomes a winding-up petition.

Get in touch