What to do if you receive a Statutory Demand

Описание: Receiving a Statutory Demand is a critical moment for any business. It’s not just another overdue notice—it’s a legal step that can lead to forced liquidation if ignored.

Your response depends on three key scenarios:

1. You Can Pay

This is the simplest situation. Pay the debt within 15 working days, and the matter is resolved.

2. You Can’t Pay

This is where swift action is essential. Once the 15-day deadline passes, the creditor can apply to wind up your company in the High Court. You should:
✅ Seek immediate legal advice to explore restructuring or settlement options.
✅ Consider negotiating a payment arrangement with the creditor.
✅ Assess whether liquidation or voluntary administration is the best course forward.

3. You Won’t Pay (Due to a Dispute)

If you believe the debt is invalid—for example, due to poor workmanship or an overcharge—you must act within 10 working days to apply to the High Court to have the demand set aside. If you don’t, the law assumes your company is insolvent, making liquidation much harder to contest.

The Worst Mistake is Doing Nothing.