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Setting Aside a Statutory Demand

June 14, 2012 By Benchmark

The service of a statutory demand is the first stage of the court bankruptcy process. A debtor can apply to the court to set aside a statutory demand (cancel the statutory demand). The grounds by which the court may grant an application to set aside a statutory demand are provided in Rule 6.5(4) Insolvency Rules 1986, they are as follows:

a) the debtor appears to have a counterclaim, set-off or cross demand which equals or exceeds the amount of the debt or debts specified in the statutory demand; or 
b) the debt is disputed on grounds which appear to the court to be substantial; or 
c) it appears that the creditor holds some security in respect of the debt claimed by the demand, and either Rule 6.1(5) is not complied with in respect of it, or the court is satisfied that the value of the security equals or exceeds the full amount of the debt; or 
d) the court is satisfied, on other grounds, that the demand ought to be set aside.
 
Each of the above grounds have been the subject of much litigation. As a result of this litigation each ground has its own particular nuances which need to be dealt with in such an application.
 
At Benchmark Solicitors our Insolvency and Bankruptcy team we can assist with making an application to set aside a statutory demand and ensure that the application has the best possible prospects of being successful; therefore potentially stopping you being made bankrupt.
 
Please contact our Insolvency and Bankruptcy team for more information 
 
Chris Tuckett (Solicitor) – Benchmark Solicitors LLP
 

Filed Under: Bankruptcy

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Property Solicitors Central London

Benchmark Solicitors LLP is a Central London based law firm specialising exclusively in land and property related disputes.  Our team of experienced property dispute lawyers are based in Temple just moments from the Royal Courts of Justice.

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Our solicitors only specialise in civil dispute resolution (commonly referred to as litigation). Our team have particular expertise in claims involving property repossessions and tenant evictions, landlord and tenant disputes, bankruptcy and the family home and investment property (including foreign property investments).  Given our proximity to the Royal Courts of Justice and Central London County Court we are able to offer competitive rates for agency advocacy services.

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