Statutory Demand Calculator

A statutory demand is a formal written demand for payment of a debt. For individuals, the debt must be at least £5,000; for companies, £750. The debtor has 21 days to pay, reach an agreement, or apply to have the demand set aside. If they fail to comply, the creditor can petition for bankruptcy (individuals) or winding up (companies). Statutory demands are a serious step and should not be issued lightly.

Yes, you can apply to court to set aside a statutory demand within 18 days of receiving it. Grounds include: you have a genuine dispute about the debt, you have a counterclaim that equals or exceeds the debt, or the creditor holds security for the debt. The application fee varies. If the debt is genuinely disputed, the court will usually set the demand aside.

If the debtor does not pay, negotiate, or successfully set aside the demand within 21 days, the creditor can present a bankruptcy petition (individuals, fee £990) or winding-up petition (companies, fee £1,600). The petition is a court application to declare the debtor bankrupt or wind up the company. This triggers serious legal consequences.

Issuing the statutory demand itself has no court fee — it is simply a formal document served on the debtor. However, you should use a solicitor to ensure it is correctly drafted and served (typically £500–£1,500). If the debtor does not comply and you proceed to a petition, costs escalate significantly: £990 bankruptcy petition or £1,600 winding-up petition, plus solicitor and insolvency practitioner fees.

No. A CCJ (County Court Judgment) is a court order establishing that a debt is owed and must be paid. A statutory demand is not a court order — it is a formal demand that can lead to insolvency proceedings. A statutory demand is typically used when the debt is undisputed and the creditor wants to pressure payment quickly. A CCJ is used when the debt needs to be formally established by a court.