Comparison Guide · 2026/27
Statutory Demand vs County Court Judgment for Business Debt UK 2026
When a business customer will not pay an undisputed debt, creditors typically choose between a statutory demand — a formal precursor to a winding-up petition that puts pressure on a company debtor — and pursuing a County Court Judgment through the civil courts, which confirms the debt legally but requires separate enforcement. This guide compares the two routes for 2026/27, covering timescales, cost and the insolvency risk each carries for the debtor.
At a Glance
| Feature | Statutory Demand | County Court Judgment |
|---|---|---|
| Purpose | Formal demand; evidence of insolvency if unpaid after 21 days | Legal confirmation that the debt is owed |
| Response window | 21 days for the debtor to pay, secure or dispute | Typically 14 days to respond to the claim |
| Best suited to | Clearly undisputed debts owed by companies | Any debt, including disputed amounts needing a court decision |
| Does it recover the money directly? | No — it is pressure, not enforcement | No — separate enforcement action is usually needed |
| Risk if debt is disputed | Demand can be set aside; costs risk to creditor | Court resolves the dispute at hearing |
| Escalation route | Winding-up petition if unpaid and undisputed | Warrant of control, attachment of earnings, charging order etc. |
When a Statutory Demand Wins
- The debt is clearly owed, undisputed, and above the minimum threshold for insolvency-based demands (check gov.uk for the current figure)
- The debtor is a company that would be seriously affected by the threat of a winding-up petition
- You want a faster, lower-cost route to prompt payment without full court proceedings
When a County Court Judgment Wins
- The debtor disputes the debt, in whole or in part, and the disagreement needs a court decision
- You are dealing with an individual (sole trader) debtor rather than a company
- You want a formal judgment on the debtor's credit file as leverage, followed by targeted enforcement action
Frequently Asked Questions
What is a statutory demand and when is it used?
A statutory demand is a formal written demand for payment of an undisputed debt, served on a company or individual debtor. For company debtors, if the debt (currently at least £750, though check gov.uk for the up-to-date minimum) is not paid, secured or a genuine dispute raised within 21 days, the creditor can use the unsatisfied demand as evidence of insolvency to petition for the company's winding up. It is generally faster and cheaper than court proceedings but carries no guarantee of payment on its own — it is a pressure tool, not an enforcement order.
What is a County Court Judgment (CCJ) and what does it give you?
A County Court Judgment is a court order confirming that a debtor owes you a specific sum, obtained by issuing a claim (via Money Claim Online for straightforward debts, or the county court generally) and the debtor either not responding, not defending successfully, or the claim being decided in your favour at hearing. A CCJ alone does not recover the money — you typically need a separate enforcement step, such as a warrant of control, attachment of earnings, third party debt order or charging order, unless the debtor pays voluntarily to protect their credit file.
Which is faster for recovering business debt?
A statutory demand can be drafted and served quickly and gives the debtor only 21 days to respond, so where the debt is genuinely undisputed and the debtor is a company that fears a winding-up petition, it can prompt fast payment. A CCJ claim, by contrast, follows the county court timetable — the debtor typically has 14 days to respond, defended claims can take months to reach a hearing, and enforcement adds further time. For undisputed debts where insolvency pressure is a credible threat, a statutory demand is often quicker; for disputed debts, only a court claim can resolve the dispute.
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What is the risk of using a statutory demand if the debt is actually disputed?
If the debtor genuinely disputes the debt (in whole or in part) and applies to have a winding-up petition based on the demand dismissed or the demand set aside, the creditor can face a costs order and reputational/practical setback. Statutory demands are best reserved for debts that are clearly due and not seriously disputed; where liability or amount is contested, a court claim (leading to a CCJ if successful) is the more appropriate and lower-risk route.
Can I use both a statutory demand and a CCJ?
Yes — some creditors first obtain a CCJ to establish the debt is legally owed and then, if it remains unpaid, use the unsatisfied judgment debt as grounds to serve a statutory demand and potentially petition for winding up. This sequential approach removes any argument that the debt was disputed, strengthening the insolvency route, though it takes longer overall than going straight to a statutory demand. Always take advice on your specific debt and debtor situation, ideally from an insolvency practitioner or solicitor.
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Disclaimer: This comparison is general information, not legal advice. Court procedure, fees and thresholds can change — always check current gov.uk/HMCTS guidance or speak to a solicitor or licensed insolvency practitioner before pursuing a business debt.