Statutory Demand 2017-12-07T02:05:49+00:00

Statutory Demand Solicitors in St Helens


Keith Park Solicitors provide essential and expert legal advice regarding statutory demands.

A Statutory Demand is the designated form produced under the provisions of the Insolvency Legislation and Rules for formally demanding repayment of a debt over £750.00.

If you have received a statutory demand or would like advice on this matter our specialist stautory demand solicitors based in St Helens are ready to answer your questions or provide you with the legal advice and support you require.

“Ian provided me with an excellent service, he couldn’t have done anything better. He was very supportive and knowledgeable, kept me fully informed and explained complex matters to me in a way that I could instantly understand”

What is a statutory demand?

A statutory demand is the first step to bankruptcy against an individual or the winding up and Liquidation of your company if you have a debt over £750, and this is prepared and served without any court involvement.

A statutory demand can be served as soon as the debt is due without warning and a court judgment is not necessary. If the debtor disputes the claim, they can apply for the statutory demand to be set aside. The bankruptcy court will halt the bankruptcy if there is real prospect of putting forward a defence or the debt is disputed.

You will need expert help in applying to have the statutory demand set aside. If you make an application it is essential that you are able to show that the debt is in dispute and has a real prospect of a defence. That is where we come in to provide essential help.


Why do creditors use them?

  • The statutory demand procedure is simple to implement and does not require any notice.
  • To issue a statutory demand all you need to do is complete a form.
  • You can send a statutory demand by 1st class post or ‘substituted service’.
  • You do not need a solicitor to issue a statutory demand.
  • You do not need to involve the court in filing a statutory demand.
  • They are more effective than a county court summons.


Suggestions for you: If you agree to the debt and have no defence.

  • If you want to pay back the money once and for all but cannot afford to do so then you might be better off trying to raise the cash to sort out this debt or to take an alternative route. An example might be to take out a debt consolidation loan or an IVA to pre-empt the bankruptcy proceeding.
  • Your creditor may agree to have you put a charge on your home for their debt if your current debt is unsecured. This would turn it into a secured debt which would show them that they can get their money back next time you sell your property. Make sure, if you do this, that you put in conditions that prevent them from immediately forcing you to sell the property to get the money.
  • Even if you do act now then you could potentially make the situation worse if you do not do the right thing, or commit to a course of action that you are not in a position to fulfil.

The creditor that has issued the Statutory Demand has done so at some considerable cost and so it is highly likely that their legal team believes you are “good for the debt” – for example they know that:

  • You are a home owner with enough equity in your property to cover the amount of debt and their fees.
  • You have other assets that could be seized to cover the amount of debt and their fees.
  • You have access to sufficient funds to cover the amount of debt and their fees.
  • You are in full time employment, they can apply for an attachment of earnings from your employer so they receive their money from your wages every month.

If you do not agree with the information that your creditor has put in the statutory demand:

Then you can start a dispute to have the demand set aside. The court will stop the time limit of 21 days on your demand if you do this for the time being. You will, however, need to do this within 18 days of the receipt of your demand using forms 6.4 and 6.5 and a sworn statement. Reasons that are acceptable here include:

  • Either all of what you owe (or an unsecured element of it) totals less than £750.
  • You have a claim against your creditor yourself (i.e. they also owe you money) that is the same/more than the sum that you owe them.
  • The debt in question is a secured debt which uses as security property that has a value equal to or greater than the debt itself.
  • The actual debt itself is in dispute.

Warning!! Dont think that if the value of debt on the demand is incorect. (example £3000.00 debt but you only accept £1000.00 of the debt is owed) and thats your defence, you’re wrong. As long as you admit to over £750.00 of the debt then Bankruptcy will continue.

What can we do for you?

  • We can establish if you have a Real Prospect Of Putting Forward A Defence.
  • If you have we stop the person/company you owe the money to going through with the Bankruptcy/Company Winding Up Order.
  • Once we have done that your debt is set aside.

We strongly advise that you seek legal advice to have the demand set aside and not do it yourself, as the other side would be represented by either a Solicitor or a Barrister at court and you only have one chance to make your case for having the statutory demand set aside. If you are not successful on the day then you will be in for expensive court and legal fees to add to your debt and the strong possibility that your home or business would be at risk!


We understand that receiving a statutory demand can be a stressful experience. Receiving expert legal advice from a statutory demand solicitor can help put your mind at rest. Get in touch to book a free first advice appointment; at this appointment you can explain your situation to an expert solicitor who will advise you on your best course of legal action. There is absolutely no obligation to take matters further after this free initial advice.

KP Solicitors head officeWe are based in St Helens Town Centre in Merseyside; we can provide expert statutory demand legal advice right across the North West and in some cases even further afield. Call us on 0800 195 5218 or complete the contact form on the right hand side of this page.