
Step-by-step guide to form SD2
- Explains what to write in each box on the form
- Clear and easy to understand
- Get it right first time to avoid problems later
This step-by-step guide to form SD2 is designed to make filling in the statutory demand form simple for you. Form SD2 is the form to use if you are owed £5,000 or more by an individual and you want to threaten them with bankruptcy if they do not pay up.
Statutory demands can be effective in proving you are serious about debt collection and showing you are prepared to take matters further if payment is not forthcoming. They can be very effective tools to encourage payment of larger sums.
Do not forget that once you have completed your SD2 form, do not simply post it to the recipient. There are rules about how you need to send it to them so that you can be as sure as possible they have seen it, and can prove it later if needed. See Dealing with late payments without going to court for the method(s) to use.
You can also purchase this guide as part of the Debt collection toolkit.
Q&A
When should I use this document?
You can use this step-by-step guide to form SD2 as an aide to completing the SD2 statutory demand form correctly.
The SD2 form is the right form to use if you are owed money by an individual. They must owe you £5,000 or more for you to be able to use form SD2 to threaten to make them bankrupt if they do not pay. It does not matter if the debt owed is related to their business or not, so long as it is owed by them personally, and not any company they have set up. For example, this form is equally appropriate if a sole trader or freelancer owes you money, as if a client hasn't paid you.
You can use this statutory demand form even if you are not yet sure whether you actually want to take the matter further by applying to court to make the person bankrupt if they continue not to pay. Often the receipt of a statutory demand alone can be effective to prompt payment.
What does this document cover?
This step-by-step guide to correctly completing form SD2 will take you through the form explaining what you need to know to fill it in properly.
Why do I need this document?
It is important to get your SD2 statutory demand form right. This guide will help you to do it properly.
If you choose to follow up your statutory demand by applying to make the recipient bankrupt if they continue not to pay you, it is vital that there are no mistakes on the form. Errors can mean additional costs and delays in taking the next step, sometimes even meaning you have to start again with a new SD2 form.
Where can I find out more?
For guidance about statutory demands, when you could use one and how to send it, see Dealing with late payments without going to court.
There are other statutory demand forms for different circumstances. See:
-
Step-by-step guide to form SD1 (if a company owes you £750 or more);
-
Step-by-step guide to form SD3 (if an individual will owe you £5,000 or more, it is not due yet, but you are sure they will not be able to pay when the time comes); and
-
Step-by-step guide to form SD4 (if an individual owes you £5,000 or more under a court order).
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