Statutory Demand Solicitors

What Is a Statutory Demand?

A statutory demand is a formal written demand for payment served on you by a creditor under the Insolvency Act 1986. It is usually the first step a creditor takes before petitioning the court for your bankruptcy, and it must set out the amount owed, who it is owed to, and what will happen if you do not respond.

Once you have been served with a statutory demand, the clock starts running. You generally have 21 days either to pay the debt in full, come to an arrangement with the creditor, or take steps to challenge it. If none of these happens within that period, the creditor may apply to the court for a bankruptcy order against you, which can have serious consequences for your finances, your credit record and your ability to run a business.

How to Set Aside a Statutory Demand

If you believe the debt is wrong, disputed, or unfairly demanded, you may be able to set aside a statutory demand before it leads to bankruptcy proceedings. This is done by applying to the court, and time is critical: you usually only have 18 days from the date of service to make that application.

Common grounds to set aside a statutory demand include:

• You genuinely dispute all or part of the debt on substantial grounds
• You have a counterclaim, set-off or cross-demand that equals or exceeds the amount claimed
• The creditor holds security for the debt that covers its value
• There has been a defect in the statutory demand itself or in how it was served
• Setting aside the demand would otherwise be in the interests of justice

Because the deadline to set aside a statutory demand is so short, acting quickly matters. Our statutory demand solicitors can assess your position, identify whether you have valid grounds, and prepare and file the application on your behalf within the required timeframe.

Bankruptcy Solicitors Warrington - Talk to Our Team

As bankruptcy solicitors with decades of experience supporting local individuals and businesses, we take the time to understand your circumstances before recommending a way forward. Whether you need to respond to a demand you have just received or want a second opinion on your options, get in touch with our team today for clear, practical advice. You may also find our mediation solicitors helpful if an out-of-court resolution is an option.