Grounds For Setting Aside A Statutory Demand?

There are legitimate grounds to set aside a Statutory Demand against an individual or apply for an injunction preventing the presentation of a winding up petition against a company. These include:

• The debt amount is below £5,000 for an individual and £10,000 for a company.
• The debt is disputed, and you can evidence to the Court that there are legitimate and reasonable grounds for dispute. You have a cross-claim against the creditor, which reduces the sum owed to below £5,000 for individuals or £10,000 for companies
• The debt is secured
• The Court is satisfied on other grounds that the Statutory Demand should be set aside. This could include a situation where the debt has already been made subject to a court judgment ordering payment by instalments, and you are up-to-date with the arrangement.

If you believe you have grounds to set aside a Statutory Demand, it is essential to act quickly. Otherwise, the creditor can apply to have you bankrupted within 21 days of the demand date.

A Court is unlikely to set aside a Statutory Demand that contains a mistake unless it is a fundamental error.