HomeCase studiesDefending a client against a statutory demand and freeing them from the risk of bankruptcy

Why the client needed our help

This commercial client had been served with a statutory demand for a debt allegedly incurred by him as a result of an instruction to a solicitor in relation to a company matter. The client had not signed a personal retainer with the solicitors and disputed their charges in any event. There was a serious risk of bankruptcy which it was vital the client avoided.

How we helped

Our engagement with the solicitors disputing the debt and threatening an application to set aside the statutory demand gave rise to a settlement of the claim for a minimal sum, reflective only of the commercial realities of litigating.

We identified and laid out sound and strong legal grounds early on, demonstrating our confidence that the court would set aside the demand were an application to be made. Those arguments were persuasive so as to deter the claimant from taking that risk and facilitated a favourable settlement.

The outcome

We were able to finalise what had been a long running dispute enabling the client to be free of the risk of bankruptcy and any further litigation related to the matter.

Key contacts

Sue Brumby

Sue Brumby

Senior Associate

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