The statutory demand is basically a formal demand by a creditor giving the debtor 21 days to repay a debt. The demand must be in the proper form (Form 5) and be served by a sheriff officer personally on the debtor.

A creditor may use a statutory demand where the debt amounts to not less than £1,500 but this would not make them a “qualified creditor” so they would have to join with other creditor/s to reach the qualifying level of £3,000 in order to petition for a debtor’s sequestration.

If within 3 weeks after the date of service of the demand the debtor has not:

(i)  complied with the demand; 


(ii)  intimated to the creditor, by recorded delivery, that he denies that there is a debt or that the sum claimed by the creditor as the debt is immediately payable.

If this genuinly applies to the debtor, they should fill in the denial slip accordingly.

The creditor can then petition for the debtor’s sequestration.