Introduction
Have you received a statutory demand and feel overwhelmed? This guide will help you understand your rights and the steps you can take to challenge it. A statutory demand is a serious matter that can lead to bankruptcy if not addressed promptly. Thankfully, you can apply to have it set aside. If you need assistance, Contend’s highly trained AI legal experts are here to provide guidance and help you navigate your legal challenges. With Contend, getting the easiest legal help in the UK is just a click away!
If you’ve received a statutory demand, it can be a stressful experience. But don’t worry—there are steps you can take to challenge it. A statutory demand is a formal request for payment of a debt, and if you don’t respond, it could lead to bankruptcy proceedings. However, you can apply to have it set aside, which essentially cancels the demand. Here’s how you can do it.
Key Steps to Challenge a Statutory Demand
- Act Quickly: You have 18 days from the date the statutory demand was served to apply to the court to have it set aside. If you miss this window, you may still be able to apply, but only if your creditor hasn’t already filed for bankruptcy against you.
- Valid Reasons to Challenge: You can apply to have the statutory demand set aside for several reasons:
- You have a genuine dispute about the debt (e.g., you were charged for goods or services that you didn’t receive).
- You believe the creditor owes you money, which is called a counterclaim.
- The statutory demand was not issued correctly.
- The amount you owe is less than £5,000.
- You have a legal defense against the creditor’s claim, such as the creditor being too late to take legal action. It’s advisable to seek legal advice to determine if you have a solid defense.
- Secured Debts: If the debt is secured against your property or belongings, you may also apply to have the demand set aside. In this case, the item securing the debt must be worth at least as much as the amount you owe.
How to Apply
Step 1: Find the Right Court
You’ll need to apply to the court in your insolvency district, which is usually the court listed on your statutory demand. To find the right court:
- Visit the court and tribunal finder on GOV.UK.
- Select ‘The Area of Law I am interested in’ and choose ‘bankruptcy’.
- Enter your postcode.
Step 2: Fill Out the Application Form
Download and complete court form IAA from the government website. When you submit your application, your creditor cannot pursue bankruptcy proceedings against you while the court considers your case.
Step 3: If More Than 18 Days Have Passed
If you’re applying after the 18-day deadline, you can still do so as long as your creditor hasn’t filed for bankruptcy. In your application, you’ll need to include a witness statement explaining why you missed the deadline and confirming that the creditor hasn’t initiated bankruptcy proceedings.
Step 4: Attend the Hearing
Once your application is submitted, a hearing date will be set. It’s crucial that you attend this hearing. If you don’t show up, your application will be dismissed, and the creditor can immediately proceed with bankruptcy actions against you. If your application is successful, the statutory demand will be cancelled. However, you may still need to negotiate with your creditor regarding the debt.
Urgent Hearings
Due to the ongoing impact of the coronavirus pandemic, court hearings may take longer to arrange. If your situation is urgent, you can contact the court by emailing rolls.icl.hearings1@justice.gov.uk. In your email, provide details about the urgency of your case and the expected duration of the hearing.
Final Thoughts
Challenging a statutory demand can be a complicated process, but knowing your rights and the steps to take can help you navigate it more effectively. If you’re unsure about anything, don’t hesitate to try Contend’s legal expert chat. Contend’s highly trained AI legal experts will work with you to provide guidance and help you understand and resolve your legal problems. Remember, acting quickly and gathering all necessary documentation is key to successfully challenging a statutory demand.
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