Why or when to use a statutory demand?

A statutory demand can be a useful way to try to force a debtor (company or individual who owes you money) to make payment to you. If you are having problems recovering money owed to you this can force the hand of the Debtor by threatening either bankruptcy (if an individual) or winding-up (if a company). Serving a statutory demand on an individual is often a precursor to bankruptcy or winding up proceedings against the Debtor.