Statutory Demand
Call Payplan free on 0800 280 2816 or use our Debt Help Form to submit your debt problem online for free Statutory Demand advice.
If you are in arrears with payments to a credit card, store card, personal loan or catalogue, the company may decide to try and make you bankrupt. The creditor will send you a Statutory Demand, which is a formal legal document, requiring you to pay off the outstanding debt either by monthly/weekly payments or a lump sum or to secure it against a property.
You may apply within 18 days to your local County Court to "set aside" the Statutory Demand under the following circumstances:
- There is a dispute regarding the amount of money owed
- The sum owed is less than £750
- The demand has been issued in error
- You are able to pay the debt
- There is a Counterclaim of more than the money owed
Ignoring a Statutory Demand will allow the creditor to present a petition for bankruptcy against you 21 days after the date of the statutory demand.
Some companies use the issuing of a statutory demand as a tactic to frighten debtors but they should always be taken seriously. In particular a statutory demand issued for VAT by the HM Customs & Excise (who have recently merged with the Inland Revenue) should be regarded as putting its recipient in extreme financial danger.
For immediate and free debt advice please call Payplan free on 0800 280 2816 or use our Debt Help Form to submit your debt problem online.


