What is a statutory demand under the insolvency act?

A Statutory Demand is a specific type of demand and notice that a creditor (person or company owed monies) can use to demand payment from a debtor (person or company). Where there are no genuine triable issues in dispute and it is clear and agreed that the monies are owed, but have not been paid, a Statutory Demand can be the first step in pursuing a debtor via insolvency. In the case of an individual insolvency means bankruptcy, in the case of a company insolvency means a winding up petition. There are a number of ways that Statutory Demands can be challenged and opposed including technical arguments (such as where the incorrect form of demand is used), or where there are genuine triable issues in dispute. Where there is a counterclaim or where the debt is already secured insolvency is unlikely to be appropriate.