Understand the position
Clear information before you decide what to do next
What company directors should do after receiving a statutory demand, including the 21 day response period and winding up risk.
- Confirm the service date and debt details
- A company normally has 21 days to respond
- Legal advice may be needed where the debt is disputed
Check the document and date of service
A statutory demand is a formal written demand for payment. The company normally has 21 days to pay or reach an agreement. The amount, creditor, basis of debt and service date should be checked straight away.
Company demands are handled differently
A statutory demand served on a company is not set aside using the individual bankruptcy procedure. Where there is a genuine dispute or other ground, the company may need legal advice about applying to restrain a winding up petition.
Use the deadline to decide a credible route
Possible responses include payment, settlement, an agreed plan, a CVA, administration or voluntary liquidation. The route depends on whether the debt is valid and whether the company remains viable.
Practical next steps
What to prepare now
A clearer picture helps the first conversation focus on realistic options.
- Record the exact date the demand was received
- Check the creditor and amount claimed
- Gather evidence of any genuine dispute
- Seek legal and insolvency advice without delay
Common questions
Statutory Demand Against a Company FAQs
How long does a company have to respond?
A company normally has 21 days to pay or reach an agreement after a statutory demand is served.
Can a company apply to set aside the demand?
The set aside procedure applies to individuals. A company may instead need to seek a court injunction restraining a petition, which requires legal advice.
What happens after 21 days?
If the qualifying debt remains unresolved, the creditor may use the demand as evidence when applying to wind up the company.
This page provides general information and is not legal, tax or financial advice. The right action depends on the company’s circumstances. Formal insolvency procedures must be handled by an appropriately authorised professional.
