When should a statutory demand be issued?

Statutory demands are not issued or approved by the court. A creditor drafts a Statutory Demand and then sends it to the debtor. If the debtor fails to make payment the creditor is then entitled to issue a petition with the court (either winding up if a company or bankruptcy if an individual), relying on the statutory demand. The starting point is that the courts only review the content of a statutory demand at that point.