Identify which document your company has received and act on its deadline. A statutory demand, court claim, judgment and notice of enforcement are different stages with different responses. If the debt is genuinely disputed, obtain legal advice; if it cannot be paid, assess insolvency options promptly.
Business Insolvency Helpline • Checked 1 November 2026
General guidance, with procedural detail focused on England and Wales. Rules and routes can differ in Scotland and Northern Ireland.
It is a formal demand giving the company 21 days to pay or agree a settlement. Failure to address a qualifying demand can support a winding-up petition. Companies do not use the individual debtor’s statutory-demand set-aside procedure; a threatened petition may require an injunction or other legal response.
Keep evidence of service and the underlying dispute. Sending a complaint to the creditor does not by itself suspend the timetable.
Read the actual order and distinguish a new claim from an existing judgment. Check the company name, service address, amount and payment terms. If judgment was entered incorrectly, ask a solicitor about the appropriate application and whether enforcement also needs to be stayed.
Where the debt is accepted, put forward only a proposal the business can afford. A discussion about instalments is not the same as written agreement or a court-ordered stay.
Powers depend on the debt, premises and authority. Company assets may be at risk; keep ownership and hire documents available for goods belonging to others. Do not assume household or individual tools-of-trade protections apply to limited-company equipment.
Verify the agent’s authority and do not obstruct lawful enforcement or dispose of controlled goods. Send the notice to an adviser and review the whole creditor position, not just this one demand.
If a deadline is approaching, tell us the date when you call.
No. An ordinary debt collector does not have the same powers as an authorised enforcement agent.
Not automatically. A proposal alone is not a universal legal pause. Check whether a formal protection or agreed hold is actually in place.
No. Preserve the evidence and obtain advice quickly about the correct challenge and deadline.
Sources checked for this guide
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