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ARTICLE · 17 NOVEMBER 2025

Back To Basics - Disputes Series

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A statutory demand is a familiar feature of insolvency processes across the world, and the BVI is no different.

British Virgin IslandsInsolvency/Bankruptcy/Re-Structuring
Andrew Willins
Andrew Willins
Fay O'Halloran
Fay O'Halloran
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A statutory demand is a familiar feature of insolvency processes across the world, and the BVI is no different. In theory, a statutory demand can be a useful tool used by a creditor to force a company to either pay an outstanding debt, or run the risk of liquidation.

In summary:

  • A creditor can, under section 155 of the BVI Insolvency Act (the Act), serve a statutory demand requiring payment of a liquidated sum exceeding US$2,000. The debtor would then have 14 days within which to apply to set aside, or 21 days to satisfy, the demand.
  • If a statutory demand is not satisfied and either (i) an application to set aside the demand is not filed within 14 days (a deadline which is not capable of extension), or (ii) the set aside application is unsuccessful, then the debtor is presumed to be insolvent under section 8(1)(a) of the Act. A creditor may then petition for the company's winding up on that basis.

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