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What can a court do if a statutory demand is wrong?

A court can set aside a statutory demand if it is shown to be defective. This is following a legal case called Re A Debtor (Number 1 of 1987) [1989] 1 WLR 271.

Common mistakes in statutory demands

There are 2 main types of defective statutory demands:

  • Statutory demands which contain incomplete misleading or inaccurate details of the statutory demand debt claimed by the creditor from the debtor; or
  • Statutory demands where the statutory demand debt claimed was not in fact due to the creditor at the date the statutory demand was served.

There is much case law relating to statutory demand mistakes.

The court will consider the matter carefully and even in circumstances where the debt is not accurate on the statutory demand, so long as the outstanding debt is over the statutory demand minimum limit then the court will take this into account. The court will also look to see whether the statutory demand has caused any injustice to the debtor.

Equally, failure by the creditor to refer to any security it may hold over the debtor’s assets may not invalidate the statutory demand.

If you have issues with a statutory demand that you think is wrong, contact one of our team and we can assist. Our knowledge of the law and court rules mean that we can always help.

Case studies

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