Home > FAQ > Business Law FAQ'S > How to defend a statutory demand?

There can be lots of ways to defend a statutory demand many of which can be technical in nature. For example statutory demands can be served using an incorrect form, be unsigned or contain incorrect particulars. The first step therefore is to see whether there is an easy ‘win’ or a technical defence. Otherwise the most common way to defend a statutory demand is to dispute the debt. If there is a genuine triable issue in dispute then the court will usually agree to set aside the statutory demand in the case of an individual, or order an injunction to prevent a petition being issued in the case of a company. Taking these steps can be important because if a creditor unreasonably refuses to withdraw a statutory demand or give undertakings not to present a petition then it can be possible to obtain a cost order against the creditor for being forced to have to apply.

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