A creditor can present a statutory demand if the debt that he or she is owed is equal to or more than £750.00 for a company or £5,000.00 for an individual.
The debt must be a fixed and agreed sum, and the debtor must be unable to pay the debt as it has fallen due. There must be no disputes.
Once a creditor serves a statutory demand the debtor has 21 days to make payment of the debt. If no payment is received, the debtor is deemed to accept the debt and the creditor can then petition for the debtor’s bankruptcy or petition to wind up the company.