Manchester, UK. 12th December 2023 - What is a statutory demand? A Statutory Demand is a formal demand for payment of a debt, and it is governed by the Insolvency Act 1986. It is a legal procedure that can be used by creditors to prompt payment from an individual or a company that owes them money.
Setting aside a statutory demand is a legal process that allows a debtor to challenge the validity of the demand. If a debtor has received a Statutory Demand and believes it to be incorrect, unfair, or improperly served, they may apply to the court to have it set aside. Here is a general guide on disputing a Statutory Demand to have it set aside:
Setting aside a statutory demand is a legal process that allows a debtor to challenge the validity of the demand. If a debtor has received a Statutory Demand and believes it to be incorrect, unfair, or improperly served, they may apply to the court to have it set aside. Here is a general guide on disputing a Statutory Demand to have it set aside:
- Seek legal advice: Before taking any action, it is advisable for the debtor to seek legal advice. A solicitor with expertise in insolvency and debt matters can provide guidance on the specific circumstances and the best course of action.
- Understand Grounds for Setting Aside: There are specific grounds on which a debtor can apply to set aside a statutory demand. Common grounds include:
- Disputing the debt.
- The debt is less than the statutory minimum.
- Defects in the form or content of the demand.
- The debtor has a counterclaim, set-off, or cross-demand that equals or exceeds the amount of the debt.
The specific forms required to set aside a statutory demand in England and Wales are outlined in the Insolvency Rules.
- Form 6.4 (Rule 6.4(1)): This is the application form used by the debtor to apply to set aside a statutory demand. It sets out the grounds on which the debtor is seeking to have the demand set aside.
- Form 6.5 (Rule 6.4(2)): This form is used to provide supporting evidence and information in support of the application to set aside the statutory demand.
- Form 6.6 (Rule 6.4(3)): If the debtor is also seeking an injunction to restrain the creditor from presenting a bankruptcy petition, this form may be used.
These forms are typically submitted to the court, and the court will then schedule a hearing to consider the application. It’s crucial to follow the correct procedures and provide all necessary information and evidence to support the application.
How can Expert Commercial law assist with debt recovery action?
Expert Commercial Law has a panel of solicitors comprising law firms who can help parties to set aside Statutory Demand.
We are not a firm of solicitors; we have a panel of commercial law solicitors. If you contact us in relation to a commercial law case, whether you are looking for formal legal advice or cost-effective assistance on your case, we will pass your case on to a panel firm.
Our panel can also assist with commercial issues such as business energy claims, shareholder disputes and contract disputes.
ENDS
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