What happens if a statutory demand is not set aside?

What happens if a statutory demand is not set aside?

If you don’t go to the hearing the court will dismiss your application to have the statutory demand set aside. If the application is dismissed, your creditor can immediately apply to make you bankrupt. You may have to pay court costs if your application is dismissed.

How do you set aside a statutory demand against a company?

If you dispute the debt listed on the statutory demand form, you have the option to apply for the statutory demand to be set aside. If you wish to do this, your application must be filed in court within 18 days of being served with the statutory demand for payment.

Can I dispute a statutory demand?

If you do not agree with a statutory demand you’ve been given, you can apply to challenge it and get it ‘set aside’. You can be made bankrupt or your company wound up if you ignore a statutory demand. You must apply to the court named on your statutory demand.

What happens if you don’t pay statutory demand?

A Creditor’s Statutory Demand must be without defects. Failure to pay the debt or set a demand aside will result in the debtor company being presumed insolvent. The creditor (or any 3rd party for that matter) may apply to wind the debtor company up and declare it insolvent.

Does a statutory demand need to be personally served?

A statutory demand must be served in person by either handing it to the individual concerned, or else leaving it at the registered office or with the company director or company secretary. It can only be sent by post if it is not possible for the notice to be delivered in person.

When can a statutory demand be issued?

When you can make a statutory demand Anyone who’s owed money (the ‘creditor’) can make a statutory demand. You do not need a lawyer. If the debt’s over 6 years old, you cannot usually make a statutory demand.

How long does a statutory demand last?

How long is a statutory demand valid for? If you don’t comply with a statutory demand or set it aside, the creditor has four months to petition for your bankruptcy. If a creditor wants to use a statutory demand that’s more than four months old, they’ll need the court’s permission.

What happens after a statutory demand?

What Happens After Statutory Demand? When the statutory demand has been served the creditor will be entitled to petition for a bankruptcy order against an individual, or for a winding up petition against a company after 18 days.

How must a statutory demand be served?

You must deliver (‘serve’) the statutory demand form by: giving it to the individual who owes you money (you should try all their known addresses) leaving it at the registered office of the company or partnership that owes money (or the main place of business if they do not have a registered office)

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