Debt and insolvency document service

Statutory demand preparation and process serving

UK Bailiffs provides administrative preparation and documented service of statutory demands for businesses, solicitors and professional creditors across England and Wales. Every instruction is checked for the correct debtor type, form and service information before attendance.

Discuss a statutory demand View process serving

Correct route identified Individual and company demands are treated separately.

Service documented Time, method, address and attendance evidence are recorded.

No false promise A demand does not guarantee payment or an insolvency order.

What it does

A formal insolvency demand—not a court judgment

A statutory demand is a prescribed written demand for payment. The debtor normally has 21 days after service to pay or reach an arrangement acceptable to the creditor. For an individual served in the UK, the usual deadline to apply to set the demand aside is 18 days.

The demand is not a County Court Judgment, warrant or instruction to a bailiff to take control of goods. Non-compliance may support later bankruptcy or winding-up proceedings, but the creditor must still meet the legal requirements, issue the appropriate petition and obtain the court’s decision.

Choose the correct demand

Companies and individuals follow different routes

The threshold, prescribed form, challenge procedure and eventual petition depend on who owes the debt.

Limited company

Company statutory demand

Form SD1 is used for a demand served on a limited company. A creditor seeking to rely on non-compliance as evidence that the company cannot pay its debts must consider the £750 winding-up threshold and the requirements of section 123 of the Insolvency Act 1986.

The company normally has 21 days to pay, secure or compound the debt to the creditor’s reasonable satisfaction.
A company does not use the individual set-aside application. It may seek an injunction to restrain a petition or contest the petition.
A statutory demand is one method of establishing inability to pay; it is not required in every company winding-up case.

Individual or partner

Individual statutory demand

The prescribed form depends on whether the debt is payable immediately, follows a judgment or is payable in the future. Separate demands are required for individual partners where a partnership debt is pursued against them.

A creditor’s bankruptcy petition generally requires debts meeting the £5,000 statutory threshold.
An individual in the UK normally has 18 days after service to apply to set the demand aside.
The court may set a demand aside where the debt is genuinely disputed, secured, offset by a qualifying cross-demand or for another sufficient reason.

Suitability review

When a statutory demand may—or may not—be appropriate

The creditor should decide the legal basis and intended next step before the document is served.

Potentially appropriate

The debtor and creditor are correctly identified.
The amount is presently due or falls within the relevant prescribed form.
The debt is clear and not genuinely disputed on substantial grounds.
The creditor is prepared to consider formal insolvency proceedings if the demand is not met.

Pause and obtain legal advice

Liability, amount, contractual performance or limitation is disputed.
The debtor asserts a substantial cross-claim or right of set-off.
The debt is secured or the available security may affect the demand.
The debtor is already in an insolvency process or subject to a moratorium.
Service is required outside England and Wales.

Our service

From instruction to evidence of service

UK Bailiffs supports the administrative and service stages. We do not determine disputed liability or advise whether a bankruptcy or winding-up petition should be issued.

Information received

You provide the debt documents, debtor details, payment history and your instructions.

Details checked

We check the named parties, debtor type, address, amount and prescribed form information.

Demand prepared

The document is completed administratively from the information and legal basis you supply.

Service attempted

A process server attends using the method appropriate to the debtor and circumstances.

Evidence returned

You receive the recorded outcome and appropriate statement, certificate or service evidence.

Service requirements

Delivering the demand and preserving evidence

The rules and official guidance distinguish between individuals, partnerships and companies. The method used should be capable of bringing the demand to the debtor’s attention.

Debtor	Usual approach	Evidence retained
Individual	Personal service should be attempted at known addresses. If personal delivery cannot be achieved, an alternative method may be considered in accordance with the Insolvency Rules and the case circumstances.	Dates, times, enquiries, addresses attended, descriptions, delivery method and supporting records.
Limited company	The demand may be left at the registered office, or served through another legally permitted company-service route. The current registered-office details should be verified before attendance.	Companies House check, address, time, method of delivery, recipient where applicable and photographs where appropriate.
Partnership	The correct route depends on whether the demand is against the partnership, one or more individual partners, or both. Each intended debtor and document must be identified precisely.	Named legal entities, partners pursued, places of business, attendance record and documents served.
Outside the jurisdiction	Service abroad involves additional rules and local-law considerations. It should not be treated as an ordinary domestic service instruction.	Legal instructions, jurisdiction, permitted method, translations where required and proof complying with the relevant rules.

What we need

Information for a statutory demand instruction

Provide the creditor’s full legal name and address, the debtor’s verified name and legal status, all known service addresses, company number where applicable, the amount and basis of the debt, due date, interest calculation, invoices or agreement, payment history and material correspondence.

Tell us about any dispute, counterclaim, security, existing judgment, insolvency event, breathing-space protection or moratorium. Concealing a dispute or insolvency restriction can make the process unsafe and expose the creditor to costs.

After service

The 18-day, 21-day and four-month timetable

Deadlines run from service and can have serious consequences. The exact calculation and any application should be checked by the creditor’s legal adviser.

Debtor response

An individual served in the UK normally has 18 days to apply to set the demand aside. A debtor normally has 21 days to pay or reach an agreement with the creditor. Companies use a different challenge route and should seek urgent legal advice.

Creditor’s next decision

GOV.UK states that an application to bankrupt or wind up the debtor should generally be made within four months of the statutory demand. The petition is a new court step with separate evidence, costs and risks; non-payment does not make the order automatic.

Official sources

Forms, rules and guidance

Common questions

Statutory demand FAQs

Does a statutory demand need to be issued by a court?

No. A creditor completes the correct prescribed form and serves it on the debtor. Court proceedings arise later if an individual applies to set the demand aside or the creditor presents a bankruptcy or winding-up petition.

Is a statutory demand the same as a County Court Judgment?

No. It is an insolvency demand, not a judgment establishing liability and not a warrant authorising enforcement agents to take control of goods.

How much must be owed?

For later creditor insolvency proceedings, the current thresholds are generally £5,000 for an individual bankruptcy petition and £750 for a company winding-up petition. The suitability of a demand also depends on the nature, status and evidence of the debt.

Can a disputed debt be pursued by statutory demand?

A genuine and substantial dispute is a strong reason not to use insolvency procedure as a debt-collection shortcut. The creditor should obtain legal advice because misuse can lead to the demand being set aside, an injunction and costs.

How long does the debtor have to respond?

The normal payment or agreement period is 21 days. An individual served in the UK normally has 18 days to apply to set the demand aside. Different periods can apply to overseas service.

Can a company apply to set aside a statutory demand?

Not through the individual statutory-demand set-aside procedure. A company may seek an injunction to prevent presentation or advertisement of a winding-up petition, or oppose the petition, and should obtain urgent legal advice.

Does non-payment guarantee bankruptcy or winding up?

No. The creditor must still start the correct proceedings, prove the required legal grounds and pay the applicable court fee and deposit. The court decides whether an order is made, and recovery for unsecured creditors is not guaranteed.

What does UK Bailiffs provide?

We can prepare the prescribed document administratively from client-supplied information, arrange professional service and provide evidence of the attempt or completed service. We do not decide disputed legal liability or conduct the later insolvency petition.

Need a statutory demand prepared and served?

Send the debtor details, debt documents, service addresses and any relevant correspondence. We will identify the information required for administrative preparation and documented process service.

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