Generate a statutory demand under the Insolvency Act 1986 for an undisputed debt — company (over £750) or individual (£5,000+). England and Wales. From £4.99.
A statutory demand is a formal written demand for payment under the Insolvency Act 1986 — the step above a Letter Before Action. If a company does not pay, secure or compound for the debt within 21 days, the creditor can present a winding-up petition; for an individual, the creditor can present a bankruptcy petition. It is served in the prescribed form (Form SD1 for companies; Forms SD2, SD3 or SD4 for individuals).
Only where the debt is a fixed (liquidated) sum, is due and payable now, is genuinely undisputed, the debtor has no counterclaim or set-off, and you genuinely intend to petition for insolvency if it is not paid. The debt must exceed £750 for a company or be £5,000 or more for an individual to found a petition. A statutory demand is not a debt-collection letter and must not be used as one.
Serving a statutory demand for a disputed or unliquidated debt, or where the debtor has a genuine cross-claim, is an abuse of the insolvency process. The court can set the demand aside (for an individual, within 18 days of service) or restrain presentation of a winding-up petition by injunction (for a company), in each case with an adverse costs order against the creditor. If the debt is disputed, use a Letter Before Action and the ordinary County Court process instead.
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