Once you have been served with a Statutory Demand you need to act quickly to avoid a possible bankruptcy petition being issued against you.
There are several options open to you:
- Ignore it, and risk bankruptcy proceedings being commenced against you;
- Dispute the debt and ask the Creditor to agree to set aside the statutory demand;
- Pay the full sums demanded - within 21 days;
- Reach a settlement with the creditor; or
- Apply to court to have it set aside (withdrawn) - within 18 days.
It is worth bearing in mind, that if you wish to negotiate a settlement with the creditor you need to keep an eye on the deadlines and take action before they expire as you do not want to prejudice your position.
A Statutory Demand can be set aside for the following reasons:
- The debt is disputed on substantial grounds;
- The Debtor has a counterclaim, cross demand or set off which is equal or above the amount being claimed;
- The Creditor holds security, of a greater or equal amount, for the debt which has not been disclosed as required; or
- Other grounds the court deems fit.
In order to apply for a set aside you need to make an application, accompanied by a witness statement, to the Court named in the statutory demand. The Court may deal with the matter on paper or may order a hearing.
If you have been served with a Statutory Demand, it is clear that quick action has to be taken so as to avoid possible bankruptcy proceedings being issued against you. The law surrounding these areas can be complex and it is vital that advice is sought quickly.
For further information please contact Natasha Biggs on 01634 828277 who will be happy to discuss your individual circumstances.