How to set aside a statutory demand
A statutory demand is set aside pursuant to Rule 6.4(1) of the Insolvency Rules 1986. There are strict statutory demand time limits for doing this. Essentially, an individual served with a statutory demand must apply to set aside the statutory demand within 18 days from the date the demand was served.
If you make an application in the prescribed time period, then the statutory demand is stopped until the hearing.
There are a number of main reasons for the statutory demand to be set aside by a Court. The main one is that the statutory demand is disputed on substantial grounds. Others include where the debtor has a claim against the creditor which is the same or higher in value than the creditors claim against the debtor. If that happens, the two claims effectively cancel themselves out and the statutory demand is ineffective.
Other examples where a statutory demand set aside is appropriate is where the creditor already has security in place over an asset of the debtor. This may for example be a charge over a property.
Statutory demand set aside is a very important process to get right. Failure by an individual to do it correct can lead to a bankruptcy petition. Therefore, expert legal advice is always recommended and we can help you with this.
Contact expert statutory demand solicitors now
Please contact one of our expert statutory demand lawyers now for your consultation. At Francis Wilks & Jones, we have all the statutory demand experience needed to deal with any type of statutory demand problem. We offer fast and effect statutory demand advice, whatever your situation. Call now for a friendly consultation.
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