Statutory demands are effective - why?

This debt recovery tool should be used on undisputed debts of £750 or more or when a judgment has been obtained and is unlikely to be recovered by bailiffs.

The demand requires limited companies or individuals to discharge your debt within 21 days of demand otherwise they have committed an 'Act of Bankruptcy/Liquidation' - entitling you to present a winding up petition/bankruptcy petition.

Usually the demand itself has the desired effect on the debtor as the consequences of bankruptcy or liquidation is ultimate.