Statutory demand set aside for an individual

Pursuant to Rule 10.4 of the Insolvency Rules 2016 an individual who has been served with a statutory demand can apply for the statutory demand to be set aside. The application must be made within 18 days from the date the statutory demand was served.

If an application is made within that time any further steps in the statutory demand process by the creditor are put on hold until the hearing has taken place. Section 267(2)(d) of the Insolvency Act 1986 specifically states that a bankruptcy petition cannot be issued at such time as an application to set aside the statutory demand remains live.

A statutory demand can be set aside for the following reasons:

  1. The statutory demand debt is disputed on substantial grounds.
  2. The debtor appears to have a counterclaim or set-off which exceeds the creditor’s claim on the statutory demand.
  3. The creditor is shown to hold security over the statutory demand debt.
  4. The court is satisfied that there are other grounds for the statutory demand to be set aside.

Applications to set aside need to be done within the 18 day window failing which a bankruptcy petition can be issued against the individual in question. Therefore, swift and effective advice is needed quickly.

The application needs to be done on an application notice and supported by a witness statement in the prescribed form. Legal assistance is very sensible to maximise chances of success and avoid bankruptcy proceedings.  The application notice must be pursuant to Form 6.4 and the witness statement in support of the application of a statutory demand set aside in the Form 6.5.

Contact an expert statutory demand solicitor now

Please contact one of our friendly expert statutory demand solicitors now for a consultation. At Francis Wilks & Jones, we have all statutory demand experience needed to deal with any type of statutory demand problem.  Feel free to look at our website and the many different statutory demand examples of cases where we have successfully assisted our clients.


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