Don’t Ignore It! Why You Must Respond to a Statutory Demand Immediately
Receiving a Statutory Demand can be frightening — and it should be. It is one of the most serious debt-recovery tools that a creditor can use against an individual in England and Wales, and the time limits for responding are extremely strict. If you fail to act quickly, you could face bankruptcy proceedings even if the debt is disputed or incorrect.
At Parachute Law, we help individuals across England and Wales challenge unfair, inaccurate, or aggressively-used Statutory Demands. Here’s why replying ASAP is absolutely critical — and how our solicitors can protect you.
What Is a Statutory Demand and Why Is It So Serious?
A Statutory Demand is a formal demand for payment of a debt over £5,000, served on an individual. Creditors often use it as a shortcut to bankruptcy because it does not require a court Order to issue.
If you do nothing within 21 days, your creditor can treat your silence as evidence that you cannot pay your debts and may start bankruptcy proceedings. This can happen even if the Statutory Demand is wrong, inflated, already paid, or based on a dispute.
Bankruptcy is public, expensive, and can seriously damage your long-term financial position — so acting quickly is essential.
You Only Have 18 Days to Apply to Set Aside a Statutory Demand
If you disagree with the demand, you only have 18 days from the date of service to apply to the court to have it set aside. This is not a flexible deadline — courts rarely grant extensions, and missing it can severely limit your ability to challenge the debt.
You should apply to set aside the Statutory Demand if:
• You dispute the debt
• The amount is wrong or includes unfair interest/charges
• The debt is already paid
• There is an ongoing dispute
• The creditor is using the demand as pressure, not genuinely for insolvency
• You have a counterclaim against the creditor
• The debt is statute-barred (over 6 years old in most cases)
Why Fast Legal Help Makes a Huge Difference
Setting aside a Statutory Demand is a technical legal process. Your court Application must be done properly and supported by a strong and properly worded Witness Statement. Errors or omissions can lead to your Application being dismissed — leaving you exposed to bankruptcy proceedings.
At Parachute Law, we:
• Review your Statutory Demand and the creditor’s evidence
• Advise whether you have grounds to set it aside
• Draft your court Application and Witness Statement — or guide you step-by-step on how to prepare these yourself if you prefer to handle it personally
• File all documents with the court and serve them on the creditor (or their solicitors) on time — or advise you on the correct procedure if you wish to manage this yourself
• Represent you at the court Hearing if required — or provide tailored guidance on how to confidently represent yourself
Don’t Wait — Every Day Matters!
A Statutory Demand is not something to put aside or think about later. The legal deadlines are strict, and the creditor can move very quickly. The earlier you get help, the stronger your position will be.
If you’ve received a Statutory Demand, contact Parachute Law today for urgent, specialist advice and book a free initial 10 minute consultation.
We are a fully-remote English law firm assisting clients nationwide — and we can act immediately to help protect you from bankruptcy.
Call us on: 0207 183 4547
Email us at thelegalteam@parachutelaw.co.uk
Related Articles:
Statutory Declaration in the UK: What It Is & How to Make One Legally
Avoid Costly Mistakes: What You Need to Know About Statutory Declarations in the UK
