statutory demand
A standard form used for the enforcement of debts. It typically sets out a demand by a creditor to a debtor to honour payment of an amount owing. The amount may be due immediately or at a future date (if the creditor has reasonable grounds for believing that it will not be paid at this date). The demand will also specify a period of three weeks for repayment or other satisfactory solution. Failure to comply with the demand by the debtor will be evidence of an inability by the debtor to pay creditors and can be used to support a compulsory winding-up petition under section 124 of the Insolvency Act 1986. |