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Responding to a statutory demand

You have 21 days to act. Ignoring a statutory demand can lead directly to a bankruptcy petition.

Statutory Demands3 min readReviewed July 2026

A statutory demand can be served for unsecured debts of £5,000 or more (for personal bankruptcy). You have 18 days to apply to set it aside, or 21 days to pay, agree security or make a repayment arrangement.

If you have a genuine dispute over the debt, an offset, or the debt is under £5,000, apply to set the demand aside. If the debt is real but you can't pay in full, offer a payment plan quickly — creditors often accept rather than pursue bankruptcy.

If you can't pay and can't set aside, get urgent help. Options may include an IVA, a DRO, or negotiating with the creditor. Free debt help can act quickly enough to matter.

Guidance, not personalised helpThis article is written to inform. It isn't personalised debt or legal advice — a Debt Compass adviser will discuss your options and eligibility with you before you choose a route.