Can I set aside any statutory demand?

No. You must have valid legal grounds, such as a genuine dispute about the debt, a valid counterclaim, or the creditor holding security equal to or exceeding the debt value.

You typically have strictly 18 days from the date the demand was served to apply to the court to have it set aside.

What evidence might help?

Evidence can include correspondence disputing the amount, contracts, invoices showing incorrect totals, or proof of payments already made.

What happens if I miss the deadline?

If you miss the 18-day deadline, you generally lose the automatic right to apply for a set aside, and the creditor may proceed with a bankruptcy or winding-up petition after 21 days.

Can I negotiate instead?

Yes, but negotiations do not pause the 18-day deadline. If an agreement isn't reached and confirmed in writing, you must still apply to set it aside before the deadline expires.

Procedural Insight

Can A Statutory Demand Be Set Aside?

Learn when a statutory demand can be set aside, what grounds apply and why timing matters.

The Direct Answer

Yes, in some situations a statutory demand can be set aside. Examples may include a genuinely disputed debt, procedural problems, incorrect amounts being claimed or valid counterclaims. The facts of each case matter and deadlines are important.

Detailed Explanation

Setting aside a statutory demand means asking the court to effectively cancel it. This stops the creditor from using the demand as a basis to petition for your bankruptcy or wind up your company.

People usually apply to set aside a demand when they genuinely do not believe they owe the money, or if the amount claimed is incorrect. It is not enough to simply say "I cannot afford to pay." The court requires a substantive dispute based on facts and evidence.

Common grounds for setting aside a demand include having a valid counterclaim against the creditor, the debt being heavily disputed, or procedural errors made by the creditor when issuing the demand. Timing is absolutely critical here. You only have 18 days from service to file the correct application with the court. Missing this deadline makes it significantly harder to defend yourself later.

Common Mistakes

When dealing with complex procedures, panic or lack of clarity can lead to errors. Here are the most common mistakes people make:

Ignoring the situation hoping it will resolve itself.
Failing to seek professional guidance early enough.
Missing strict legal or procedural deadlines.
Communicating emotionally rather than factually.
Making informal agreements without getting them in writing.

Readiness Checklist

Preparation Checklist

Track your progress before taking action.

Have you gathered all relevant documents and correspondence?

Do you know the exact dates of key events?

Have you identified your main objectives or desired outcomes?

Are you aware of any upcoming deadlines?

Have you kept a record of all communications?

Frequently Asked Questions

Need Clarity on Your Situation?

If you are unsure of your position, Alfred can help organise your thoughts and identify your options before you decide on your next steps.

Quick Understanding

Tell us your story. Receive a simple explanation of your situation and suggested next steps.

£19

You do not need legal knowledge
Simply tell us what happened
Documents are optional

Recommended

Detailed Analysis

A deeper review of your story and any documents you choose to provide. Receive a more detailed breakdown.

£79

Everything in Quick Understanding
Detailed breakdown of issues
Identification of evidence gaps

Priority Analysis

Everything included in Detailed Analysis plus enhanced checking and priority processing.

£99

Everything in Detailed Analysis
Enhanced checking
Priority processing

Analyse My Situation

Don't let strict deadlines pass while you figure out how to respond. Tell us what happened in your own words.

Article Author

Jeff Harris

Senior Adviser, Litigancy

Over 35 years' experience across finance, business, property and complex disputes. Today Jeff combines real-world experience with Alfred to help people understand complicated situations and make better decisions.

Published: January 2024•Updated: June 2024