Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Statutory demand definition

What does Statutory demand mean? A statutory demand is a creditor’s formal written demand requiring payment of a liquidated, due and undisputed debt within a short period (typically 21 days). In practice it is used to evidence insolvency and to precede bankruptcy (individuals) or winding‑up (companies) proceedings if the debtor does not pay, secure or compound the debt. In England & Wales and Northern Ireland, statutory demands are prescribed by insolvency legislation and rules (including the Insolvency Act 1986/NI Order and procedural rules). For companies, non‑compliance within 21 days is a ground to deem inability to pay debts (section 123). For individuals, service of a statutory...

Statutory Demands in England and Wales: Corporate and Personal Insolvency Requirements, Service, Time Limits, Thresholds and Challenges

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

This Practice Note outlines what a Statutory demand is and what it is intended to achieve in corporate and personal Insolvency, assuming the Debtor is located in England and Wales.

The statutory demand—the general position

A statutory demand (in both corporate and personal contexts) is a formal request for a debt—either immediately payable or due at a specified future time—served on the debtor by one or more of their creditors.

Across both regimes, if the debtor, within 21 days of service, does not pay the sum, does not satisfy it or provide security to the creditor’s satisfaction, or does not take the proper steps to stop the creditor acting further upon it, a presumption of insolvency arises on an inability to pay basis in respect of the debtor.

Where the debtor is an individual, an unanswered statutory demand supplies a creditor with one of only two bases on which a creditor’s bankruptcy petition can be issued—or presented—against that person...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 22/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...