How much does it cost to serve a statutory demand?

A statutory demand is unusual among legal documents: it is created by the creditor, not the court, so the only unavoidable costs are preparing it correctly and serving it in a way that will survive scrutiny.

What service costs

Because the Insolvency Rules expect personal service on an individual debtor wherever practicable, statutory demands are core work for professional process servers, priced as fixed fees. Tremark charges from £125 plus VAT for standard service, which includes a first attempt within five working days, up to three attempts at a single address, and a certificate of service. Urgent instructions, with a first visit within 48 hours, cost from £175, and genuine same day service from £210 plus mileage. A sworn affidavit of service, which some creditors prefer to hold ready for the petition stage, adds £15. Remote locations and service in Scotland or Northern Ireland, where the insolvency regimes differ, are priced individually.

Why the cheap option is expensive

The demand is usually the prelude to a bankruptcy or winding up petition, and the petition stands on the quality of service evidence. A demand posted to save money gives an individual debtor an easy argument that it never came to their attention, and gives the court a reason to hesitate. Weigh the £125 against what is at stake: the debt itself is at least £5,000 against an individual or £750 against a company, and petition costs run far beyond service fees. Evidence that removes argument is the cheapest thing in insolvency.

The costs that follow

Budget separately for what comes next if the debtor does not pay within 21 days: court fees and the official receiver's deposit on a bankruptcy or winding up petition, and personal service of the petition itself, which the rules require for bankruptcy. Tremark's instant quote calculator gives an exact fixed price for serving the demand in under a minute.