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.
- 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.
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