Questions & answers

IMPORTANT – PLEASE READ FIRST

This page gives general information only, summarised from the GOV.UK guide "Make and serve a statutory demand, or challenge one" (www.gov.uk/statutory-demands). It is NOT legal advice. Resolvemydispute Limited is not a law firm and cannot advise on your situation. The law and official guidance can change, and this summary may be incomplete or out of date. You are responsible for the information you enter and for deciding, with independent advice where appropriate, whether and how to use any document. Always check the current GOV.UK guidance and take your own independent legal advice before preparing, serving or relying on a statutory demand, and at every later step.

What is a statutory demand?

According to GOV.UK, a statutory demand is a formal request for payment of a debt, which can be made against an individual or a company.

Who can make a statutory demand?

GOV.UK says anyone who is owed money (the "creditor") can make a statutory demand, and that you do not need a lawyer to do so. That does not mean it is right for your situation – take independent advice.

Can I use a statutory demand for an old debt?

GOV.UK says that if the debt is over 6 years old you cannot usually make a statutory demand, and suggests getting legal advice instead.

Is a statutory demand the best way to recover my money?

Not necessarily. GOV.UK notes there may be faster ways of getting smaller debts paid. We cannot tell you which option suits you – take independent advice.

What happens when the debtor receives the demand?

GOV.UK says the debtor has 21 days to either pay the debt or reach an agreement to pay.

Which form is used?

GOV.UK lists different forms depending on the situation:

- Individual, debt payable now: form SD 2

- Individual, debt payable now following a judgment or court order: form SD 4

- Individual, debt payable in the future: form SD 3

- Limited company: form SD 1

- Business partnership: a separate form for each partner

- Scotland: a different form applies. This service covers England and Wales only.

This service only prepares documents based on forms SD 1 and SD 2. If your situation needs a different form, this software does not support it.

How is a statutory demand served?

GOV.UK says it must be delivered ("served") by, for example:

- giving it to the individual who owes the money (trying all their known addresses)

- leaving it at the registered office of the company or partnership (or main place of business if there is no registered office)

- giving it to the company's director, company secretary, manager or principal officer

- using a process server

GOV.UK says it can only be sent by registered post or put through a letterbox if it cannot be delivered in person. We do not serve documents for you, and how you serve is your own responsibility.

What records should I keep?

GOV.UK says to keep a copy of the demand and anything confirming the time and date of service (for example a postage receipt or process server confirmation) and that the debtor received it.

What if the demand is ignored?

GOV.UK says that if the debtor does not pay or reach agreement within 21 days, you may be able to start bankruptcy proceedings against an individual who owes £5,000 or more, or wind up a company that owes £750 or more, and that you have 4 months to apply. These are serious court processes with costs and risks – take independent legal advice before taking any step.

Can I serve a demand abroad?

GOV.UK advises getting legal help if you want to serve a statutory demand in another country. This service does not cover that.

Can a statutory demand be challenged?

GOV.UK says an individual who disagrees with a demand can apply to the court named on it to have it "set aside", usually within 18 days if they were in the UK when they received it (longer if abroad), using form IAA. GOV.UK says a demand served on a company cannot be challenged in this way, although the company can apply to stop a winding-up. If the debt is disputed in any way, this service is not suitable – take independent legal advice.

Where can I get official information?

The Insolvency Service runs the Insolvency Enquiry Line (details on GOV.UK) for information about delivering and challenging a statutory demand. For advice on your own situation, speak to a solicitor or other qualified adviser.

Does Resolve My Dispute check my document is correct?

No. We provide a document preparation tool only. We do not check, review or approve your answers or your document, and we give no advice on whether a statutory demand is appropriate, valid or enforceable. You are responsible for the accuracy of everything you enter and for everything you do with the document.