Issuing a statutory demand in Uganda: checklist
In brief
A statutory demand is an insolvency-based pressure tool: ignore it and the debtor may be presumed unable to pay. This checklist covers when and how to use it.
Who it's for & when to use it
Who it's for: Creditors of an undisputed, due debt, and their advisers.
When to use it: For an undisputed debt above the statutory threshold.
When not to use it: For a genuinely disputed debt — that risks an abuse-of-process finding.
The checklist
1. Confirm the debt qualifies
- Confirm the debt is due and undisputed and meets the Insolvency Act threshold and definition (Insolvency Act ss.2, 579).
- Do not use a statutory demand for a genuinely disputed debt — that risks an abuse-of-process finding.
2. Prepare and serve the demand
- Prepare a statutory demand in the prescribed form requiring payment within the statutory period (ss.2–4).
- Serve it properly and keep proof of service.
3. Watch the period
- Diarise the statutory period and any set-aside application by the debtor.
4. Act on non-compliance
- If unpaid and not set aside, the debtor is presumed unable to pay debts — a basis for insolvency proceedings.
Key authorities
- Insolvency Act, Cap. 108 (2023 Revision) — ss.2, 3–4, 579.
Checklist · Debt & small claims.
Actively maintained.
Last reviewed 9 June 2026; next review due 9 June 2027.
This resource is a practitioner orientation and general information, not legal advice, and does not create an advocate–client relationship. It is AI-generated. Ugandan law changes and chapter and section numbers were revised in the 2023 Laws of Uganda. Verify every statute, rule, form, fee and authority against the current primary source — and the specific facts of your matter — before relying on it.