A statutory demand is a formal written demand for a debt of £5,000 or more (company) or £5,000 or more (individual, as of October 2023 uprated threshold). If the debtor does not pay, secure the debt, or compound within 21 days, this creates a presumption of inability to pay debts — allowing you to petition for winding up or bankruptcy.

• Threshold: £5,000 or more for both companies and individuals (2023)
• Must be personally served on individual debtors
• Company: leave at registered office or serve on director
• Debtor has 21 days to pay, secure or compound the debt
• Debtor can apply to court to set aside (individuals) — must act within 18 days
• Do not use for disputed debts — risk of abuse of process costs order

Legal reference: Insolvency Act 1986 ss.267-268 (individual), s.123 (company); Insolvency Rules 2016