Abacus’ insolvency specialists have substantial experience in dealing with Statutory Demands whether you are wanting to serve one on a debtor or are on the receiving end.
- Issuing a Statutory Demand
A Statutory Demand is the first step in any Insolvency Proceedings and where you formally demand the debt owed. Your Bankruptcy Petition will be based upon the information contained in the Statutory Demand and therefore it is important that this document is correct.
Once the Statutory Demand is served upon the debtor they have 18 days in which to apply to have the demand set aside by the Court. If no such application is made a petition can be issued after 21 days.
The Statutory Demand must comply with the strict rules laid down in the Insolvency Act 1986 and if it fails to comply with these rules the demand could be set aside by the debtor or alternatively any subsequent Bankruptcy Petition could be dismissed.
Abacus Solicitors have years of experience drafting and serving Statutory Demands. We can ensure that the document is fully compliant and a good and secure basis on which to bring your Bankruptcy Petition.
- Applying to have a Statutory Demand Set Aside
As above, should a Statutory Demand fail to comply with the strict requirements in the Insolvency Act 1986 you may apply to have the document set aside and therefore prevent a creditor from issuing a Bankruptcy Petition on the basis of the same.
If your debt is a disputed debt you may also apply to Court have the demand set aside on this basis. Once an application is made to Court a hearing date will be set where both parties can put forward their case before a Judge.
A judge will then either set aside the Statutory Demand, preventing a Bankruptcy Petition being issued based on this document, or alternatively allow the demand to stand. If your application is unsuccessful you will be prevented from defending the Bankruptcy Petition on the same reasons which were submitted to the Court in your application. It is therefore important that this application is drafted correctly and your evidence presented concisely.
For more information about disputing and defending bankruptcy Petitions please click here.
Abacus Solicitors can assist you in applying to have a Statutory Demand set aside, provide you with advice as to the application and represent you at the Court hearing.