A statutory demand is a document demanding that the client either pays the debt in full or in part in a manner acceptable to the creditor, which could be by instalments. Form 6.1 is used where there is no judgment; form 6.2 is used where there is a judgment.
The statutory demand does not have to be issued by the court or even seen by it at this stage. If the debtor does not comply with the statutory demand within 21 days, the creditor can issue a creditor’s petition and ask the court to make a bankruptcy order. A creditor does not need a judgment in order to be able to serve a statutory demand for the debt. However, without a judgment the creditor might find that the debtor is able to cha1lenge the existence of the debt (see below). A creditor who does have a judgment is not required to attempt to enforce it by means of execution against goods first of all; the creditor can serve a statutory demand instead.
