What to Do if You Receive a Stat Demand
So you have received a Statutory Demand under section 268 (1) (a) of the Insolvency Act 1986, in other words somebody has sent you the documentation to make you bankrupt! This article explains the documentation required when disputing a statutory demand.
Disputing A Statutory Demand
If you are not able to come to an agreement with the creditor or there is a dispute, you can apply to the court to set aside the statutory demand.
- The statutory demand should tell you how and where you should apply to set it aside. This would normally be in the same court that you would apply for your own bankruptcy.
- To set aside the statutory demand you must do the following within 18 days of receipt:
- prepare and file an Application To Set Aside a Statutory Demand using FORM 6.4 (Now Court Form IIA)
- submit a Witness Statement in Support of Application to Set Aside Statutory Demand using FORM 6.5
Being issued with a statutory demand can be very serious! Before doing anything I would suggest that you seek independent advice!! It is not unusual for some unscrupulous creditors to issue Stat Demands, just to scare you into paying your debt, or forcing you to contact them. Get independent advice before responding!!!
Updated information on How to Stop a Statutory Demand can be found on this link. ACT NOW!