If a creditor has served you with a statutory demand, the clock is already running: 21 days to pay, or 18 days to apply to court to set it aside. This guide shows you exactly how to respond — what the letter needs to say, which grounds you can rely on to dispute or set aside the demand, and how to head off bankruptcy or winding-up proceedings before they start. Ignoring a statutory demand is the single worst thing you can do, so use the template and deadlines below.
When a statutory demand lands on your doorstep, it means a creditor is taking aggressive action. For an individual, the debt must be over £5,000; for a company, over £750. Once served, you have exactly 21 days to pay the debt, or 18 days to apply to the court to have it set aside. If you need to respond urgently, StatutoryLetters.co.uk provides the framework to draft a robust legal response.
You have the right to challenge a statutory demand if the debt is genuinely disputed, if you have a counterclaim, or if the demand was issued incorrectly. To respond, you must act swiftly. A formal response letter detailing your dispute can sometimes halt the bankruptcy proceedings before they begin. For legally sound, structured responses, many turn to the automated drafting available at StatutoryLetters.co.uk.