Statutory demand or county court claim for an unpaid invoice?

Both put formal pressure on a client who won't pay. A county court claim asks the court to order payment of what you're owed [1]. A statutory demand is a formal demand to pay within 21 days, and the first step towards making a person bankrupt or winding up a company [2]. This guide covers England and Wales.

Side by side

County court money claim and statutory demand compared
	County court money claim	Statutory demand
What it is	A claim to the county court for money a person or business owes you [1]	A formal written demand for payment of a debt within 21 days [2]
Size of debt	Any amount. Money Claim Online takes claims for less than £100,000 [3]	To go on to bankruptcy, an individual must owe £5,000 or more. To wind up a company, it must owe £750 or more [2]
Time to respond	Usually 14 days after the claim is served, or 28 days if they acknowledge it first [4]	21 days to pay or come to an agreement [2]
If the debt is disputed	The court decides the dispute	An individual can apply to set the demand aside within 18 days. The court can do so if the debt is disputed on grounds it considers substantial [5][6]. A company can't challenge the demand itself, but can ask the court to stop a winding-up petition [5]
If they ignore it	You can ask for judgment, then enforce it [7]	You can apply to make the person bankrupt or wind up the company [2]
Cost	A court fee based on the amount you claim plus interest [8]	Serving a demand is a step towards insolvency proceedings, which have their own court fees

Which one fits your situation

The client disputes the work or the amount. Use a county court claim, where the court decides who is right. An individual can ask the court to set a statutory demand aside if the debt is disputed on substantial grounds [6].
The debt is below £5,000 (a person) or £750 (a company). A statutory demand can't lead on to bankruptcy or winding up below those amounts [2], so a county court claim is the route.
A large, undisputed debt that's being ignored. A statutory demand is an option, but bankruptcy and winding up are serious steps for both sides. Take advice before using one.
You want a court order you can enforce. After judgment you can ask the court for enforcement, such as bailiffs (a warrant of control), an attachment of earnings order, a third party debt order or a charging order [7].

Before you start either

Check the invoice and the due date. A missing detail gives a slow payer an excuse. See what a UK invoice must include, or use the free invoice template.
Work out the full amount. For a business client you can add statutory interest and fixed compensation of £40, £70 or £100 [9][10]. Use the late payment interest calculator.
Send a final notice and a letter before claim. If your client is an individual, including a sole trader, the Pre-Action Protocol for Debt Claims applies: send a letter of claim with the required information and give them 30 days to reply [11]. The full chasing plan.

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Sources

GOV.UK: Make a court claim for money
GOV.UK: Make and serve a statutory demand, or challenge one
GOV.UK: Money Claim Online (MCOL) user guide
GOV.UK: Respond to a court claim for money
GOV.UK: Challenge a statutory demand
The Insolvency (England and Wales) Rules 2016, Part 10, Chapter 1 (statutory demands against individuals)
GOV.UK: Make a court claim for money: enforce a judgment
GOV.UK: Make a court claim for money: court fees
GOV.UK: Interest on late commercial payments
GOV.UK: Claim debt recovery costs
Civil Procedure Rules: Pre-Action Protocol for Debt Claims

General information, not legal advice. Checked against GOV.UK and legislation.gov.uk on 3 October 2026. For a large or disputed debt, or before starting insolvency proceedings, take advice.