Serve a statutory demand on a debtor

What is a statutory demand

A statutory demand is a notice sent to a debtor (someone who owes you money) which states the amount of the debt as of the date of the demand.

It informs the debtor of the purpose of the demand, the time in which the demand is to be complied with, and that if the demand is not complied with, bankruptcy proceedings may be commenced against the debtor.

Note: A statutory demand is not the only way to show that a debtor is unable to pay the debt. Refer to Section 312 of the Insolvency, Restructuring and Dissolution Act for more information.

How to prepare the statutory demand

Prepare the statutory demand in accordance with Form PIR-2 in the First Schedule of the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules.

The required information includes:

• The name and address of the debtor.
• Details of the debt.
  • This includes the exact amount of debt as of the date of the demand, details of interest claimed, date the debt was incurred, how the debt arose and the related details (e.g. a court judgment or order), and other particulars that would help the debtor identify the debt.
• Particulars that would enable the debtor to identify any property of the debtor or security held by the creditor.
• Your name, address and contact number.

Refer to Rules 64 and 65 of the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules for more information.

How to serve the statutory demand

You need to serve the statutory demand on the debtor. This means taking reasonable steps to bring the statutory demand to the debtor's attention, and making attempts to deliver a hard copy of the statutory demand to the debtor in person. This is known as personal service.

Only if personal service has failed, you may bring the statutory demand to the debtor's attention in one of the following ways:

• Leaving the document at the door or some other conspicuous part of the debtor's last known place of residence or business.
• Sending the document by registered post to the debtor's last known place of residence, business or employment.
• (If you do not know the debtor's address) Advertising the statutory demand in the local newspapers.
  • In this case, the time limit for the debtor to comply starts on the date of publication.

After serving the statutory demand

You may proceed to file a bankruptcy application if both of the following happen:

• The debtor does not pay within 21 days after the date of service of the statutory demand.
• The debtor does not apply to the court to set aside the statutory demand within 14 days after the date of service of the statutory demand (or 21 days if it was served outside of Singapore).

You need to file the bankruptcy application within 4 months after the date of service of the statutory demand.

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