Bankruptcy · Insolvency & Dispute Resolution
A statutory demand is a serious warning sign. If it is not resolved or challenged, it may lead to bankruptcy or winding-up proceedings. Early advice can help you understand the risks, deadlines and available options.
A statutory demand is a formal legal demand for payment of a debt. It is a powerful creditor tool because, if not dealt with properly, it may be followed by a bankruptcy petition against an individual or a winding-up petition against a company.
The requirements for issuing a statutory demand are set out in the Insolvency Act 1986. Early advice can help determine whether the demand should be paid, negotiated, challenged or set aside.
If your company is served with a statutory demand, your personal position as a director may also need careful consideration, particularly where the company may be insolvent.
HMRC may use statutory demands for tax arrears, while trade creditors, suppliers, landlords and lenders may also use them to apply pressure for fast payment.
We advise on both HMRC and private creditor demands, including negotiation, challenge, settlement strategy and urgent applications where required.
West London Law is experienced in resolving statutory demand issues and advising clients facing creditor pressure, insolvency risk and urgent enforcement action.
Where appropriate, we act quickly to negotiate, challenge demands, protect assets and prevent escalation into bankruptcy or winding-up proceedings.
Depending on the facts, it may be appropriate to negotiate, settle, request withdrawal, challenge the demand, or make an application to set it aside.
Gurvir Birang advises on insolvency, financial disputes and strategic commercial litigation, including statutory demands, bankruptcy petitions, winding-up petitions and HMRC-related pressure.
Instructions are accepted nationally depending on the circumstances.
No. A statutory demand can be used as a step toward bankruptcy or winding-up proceedings if not dealt with properly.
In some cases, yes. This may depend on the merits of the dispute, payment position and creditor strategy.
Urgent advice should be taken on whether the demand can be challenged or set aside.
HMRC demands require careful handling, particularly where tax debt, Time To Pay proposals or insolvency proceedings are involved.
For urgent advice on statutory demands, creditor pressure, HMRC debt or insolvency risk, contact us promptly.
Bankruptcy, insolvency and dispute resolution information led by Gurvir Birang.
Call 0207 889 0100 for a free consultation today.
West London Law Limited does not provide reserved services to the public.
Gurvir Birang is a practising solicitor, founder, litigator and bankruptcy expert, authorised and regulated by the SRA. Gurvir Birang practices from Spencer West LLP. Spencer West LLP is authorised and regulated by the SRA.
West London Law is a trading name of West London Law Limited, registered in England and Wales (company number 06776937).
West London Law was set up in 2003 and became non-regulated in 2020 and is no longer a firm of solicitors. This website is for marketing purposes only.
Disclaimer. Information on this website does not constitute legal advice and should not be relied upon as it does not provide a complete statement of the law. Specific legal advice should be sought and tailored to your particular circumstances.