Fighting Debt - a user guide

11) BANKRUPTCY

d) Requesting a Statutory Demand to be 'Set Aside'

Once option is for the debtor to apply to the court to 'Set Aside' the demand.

There are certain circumstances where this can be applied for however none are guaranteed and will depend on details provided to validate the request.

The application for the Demand to be Set Aside must be made to the appropriate Court on the Demand and must be done within 18 days after service of the demand. The statutory demand should tell you how and where you should apply to set it aside. This is normally in the same court that you would apply for your own bankruptcy.

To set side the demand you must submit the application to te Court within 18 days of receipt:

For an example and proper guidance on completing and submitting an application for the Demand to be Set Aside, visit:

www.insolvency.gov.uk

The application automatically causes the time for compliance with the demand to cease to run.

The valid applications for the demand to be set Aside are:

1) If there is a mistake in service or the demand then the court may 'Set Aside'

2) The debt is disputed in full or part, and there is not at least £750 admitted.

3) The debt is secured.

4) The debtor is prepared to secure / compound for the debt to the creditors satisfaction.

5) The debt is not payable at that time.

6) The debtor has a counterclaim to 'set - off' equal or exceeding the claim. (link to PPI / bank charges)

7) Execution of the Judgement has Stayed (link)

8) The Demand does not comply with the rules (link)

If the registrar / judge is satisfied that the application is without merit he/she may dismiss it without a hearing or notice to the Creditor. However is he/she is satisfied that there is merit to the application then a hearing date will be fixed and notice will be given to the Creditor / Creditor's Solicitor. At the hearing, if the court is satisfied that the debtor has a valid case, the Demand will be Set Aside and the Creditor is liable to have the application costs awarded against him.

If the demand is NOT Set Aside, the Court may take an order authorising the Creditor to present a Bankruptcy Petition (example) at a specified time / date.