A statutory demand is the first step in insolvency and bankruptcy proceedings. As with court claims, time is of the essence as there is a limited period to respond if you dispute the debt. This is done by applying to the court to set aside the demand. If you have no dispute over the debt, you have a period of 21 days within which to pay the debt. If you fail to take the appropriate action within these deadlines, your creditor will then be able to present a petition to the court to make your company insolvent or, if you are an individual, to make you bankrupt.
Due to the time pressures involved, you should take urgent legal advice.