Legal issues
The central questions are whether the debt is due, whether it is genuinely disputed on substantial grounds, whether there is a cross-claim or set-off, whether the demand is accurate and whether winding-up proceedings would be an abuse of insolvency process.
Urgency increases sharply if a petition is threatened or already presented because advertisement can have serious banking and trading consequences.
Evidence that matters
Preserve the statutory demand, service evidence, contract, invoices, statements, payment records, complaint or defect evidence, counterclaim material, correspondence and Companies House information.
Reasonable lines of enquiry
Identify the exact dispute and supporting documents, quantify any set-off or cross-claim, check whether the demand overstates the debt and determine whether the creditor has already taken petition steps.
Consider the company's solvency and whether a negotiated standstill or payment arrangement can resolve the immediate risk without court proceedings.
What happens next
The company should respond urgently. Where restraint is necessary, an application is made to the appropriate court. If a petition has already been presented, the strategy may shift to restraining advertisement, opposing the petition or seeking other urgent relief.
Immediate steps
Record the service date immediately. Do not ignore the demand. Stop casual correspondence that may create admissions and assemble the full dispute file before the 21-day period expires.
What should you send us?
Send the demand, service details, contract, invoices, statements, payment evidence, all dispute correspondence, company details and any petition or Gazette material.