Statutory demand
Legal & insolvencyA formal legal demand for payment that can be a step before bankruptcy action.
Overview
Statutory demands are used for certain debts and have strict response times.
Ignoring one can lead to court action or insolvency proceedings.
Why it matters
- It is a serious escalation of debt recovery.
- It can lead to bankruptcy if not resolved.
- It signals urgent action is needed.
FAQs
Does a statutory demand appear on my credit report?
Not directly, but related court action can affect your credit file.
What should I do if I receive one?
Seek advice quickly and respond within the required timeframe.
Related terms
Explore further
Take control of your credit health
Get the complete credit toolkit with all features included.
Start building creditInstant setup. No credit check to join. 14-day money-back guarantee.