How to Respond to a Statutory Demand

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Client successfully defends £34,000 Statutory Demand

We assist businesses and individuals to obtain the withdrawal or dismissal of a Statutory Demand.

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Support for debtors

Call 0207 504 1300 now if you have received a Statutory Demand

Never ignore a Statutory Demand. Failure to respond could result in the winding up of a limited company or bankruptcy for an individual.

Statutory Demand (Stat Demand or Stat D) is a formal document requesting payment of an outstanding debt within 21 days. Anyone can make a Statutory Demand for a debt that's less than 6 years old.

Contact I&L today, and we'll make direct representation to your creditor or their solicitor to seek the immediate withdrawal of a Statutory Demand.

It may take some time to reach an agreement with your creditor. This will depend on:

  • How you (the debtor) wish to proceed
  • Your company's (or your personal) circumstance.

Additionally, you may have to apply to the court to have the Statutory Demand set aside, or an uncooperative creditor restrained.

You (the debtor) have 3 main remedies for dealing with a Statutory Demand. But these actions must be taken early:

  • Make arrangements to pay all or part of the debt
  • Dispute the debt either partially or entirely
  • Pay the debt immediately

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Disputed Debts

There are several ways to respond to a disputed Statutory Demand. Firstly, you can reply in writing, within 18 days, by setting out in detail the grounds for the dispute. If you follow up with an invitation to withdraw the Statutory Demand, the creditor must oblige. Also, you can apply to the court to have the Statutory Demand set aside and dismissed if:

  • The debt is disputed
  • More than 6 years old

However, this must be done within 18 days of receiving the Statutory Demand.


Court Injunctions

A limited company may apply for injunctive relief if the creditor refuses to withdraw the Statutory Demand after they've been notified of a dispute. If the court injunction is granted, they'll probably have to pay your legal expenses. Legal expertise cost between £5,000 and £15,000, or more if the injunction is unsuccessfully resisted. The legal grounds for defending a Statutory Demand can be technical. As a result, it's crucial that you seek advice from an independent insolvency specialist. Contact I&L today for practical guidance and support.



The counterclaim is another effective strategy that can be used to challenge a Statutory Demand. You can neutralise a creditor and gain considerable leverage if your claim for direct, indirect, or consequential loss is worth more than their claimed debt. A savvy debtor who's been served with a Statutory Demand for £20,000 might tell the creditor:

"I agree that I owe you £20,000. But the goods you sold me were substandard, so I had to buy additional stock from another supplier. They charged me £25,000, which I’m claiming against you. I'm prepared to forget about the £5,000 difference and walk away. But if you continue with your claim for £20,000, I'll counterclaim and sue you for £25,000."


I&L can make direct representation on behalf of debtors to seek the immediate withdrawal of a Statutory Demand. Call 020 7504 1300 now for free and confidential advice...

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