Lawyers for Challenging a Statutory Demand

If you’ve been served with a Statutory Demand, our experienced legal team can act quickly to protect your position and challenge the claim.

A Statutory Demand is a formal request from a creditor asking for payment of a debt. It is often used as a warning step before more serious action, such as bankruptcy for individuals or winding-up proceedings for companies. Although it might seem intimidating, receiving one does not mean the debt is final or that insolvency is unavoidable.

There are legal grounds to Challenge a Statutory Demand, particularly where the debt is disputed or the demand has been incorrectly issued. In these situations, you can apply to the court to Set Aside the Statutory Demand. Acting quickly is crucial, as you usually have only 18 days from the date of service to respond.

We have extensive experience in Setting aside Statutory Demands for both individuals and companies. Our Debt Recovery Lawyers have been advising clients on debt and insolvency matters for over 15 years, and have developed a reputation for clear, strategic advice and fast action when time is short.

Based in Greater Manchester, we assist clients locally and across England and Wales, using our detailed understanding of the court process to help them challenge Statutory Demands successfully.

If you’ve received a Statutory Demand and are unsure what to do next, get in touch with us today. We’ll review your situation promptly and advise you on the best way forward.

How Can We Help?

From the moment you engage us, we focus on building a strong legal response and ensuring your rights are properly defended. With experience in both individual and company-related cases, we offer tailored advice and robust representation at every stage of the process. We will:

• Review the Statutory Demand and your circumstances
• Advise you on whether there are grounds to set it aside
• Prepare the court application and supporting evidence
• Attempt settlement where possible
• File the application within the required 18 days
• Represent you at any hearing or arrange representation
• Support you through any follow-up negotiations or proceedings

Our solicitors have the experience to act fast, explain your options clearly, and give you the best chance of reaching a positive outcome. If you need to Respond to a Statutory Demand, don’t delay. Contact us today for straightforward advice and immediate support.

What is a Statutory Demand and Why Have I Been Served With One?

A Statutory Demand is a formal legal notice from a creditor demanding payment of a debt. For companies, the debt must be at least £750. For individuals, the minimum threshold is £5,000. If the debt is not paid, settled, or challenged within 21 days, the creditor may use it as a basis to begin insolvency proceedings, such as a winding-up petition for a company or a bankruptcy petition for an individual.

You may have been served with a Statutory Demand because the creditor believes the debt remains unpaid, and they are considering taking more serious legal action. It’s often used when previous attempts to recover the debt have not been successful. However, receiving a Statutory Demand does not automatically mean that the debt is final, enforceable, or even accurate.

It’s important to respond swiftly. You usually have only 18 days from the date of service to apply to the court to set aside the Statutory Demand. If you miss this deadline, your options may become more limited, and the creditor may proceed with insolvency action.

What are the Grounds to Challenge a Statutory Demand?

Not every Statutory Demand is valid. If you have received one, you may be able to apply to the court to have it set aside, but you must act within 18 days of receiving it. The court will only grant your application if there is a proper legal reason to do so. Common grounds for Challenging a Statutory Demand include:

• There is a real disagreement over whether the debt is owed or how much is due
• You are owed money by the creditor that matches or exceeds the amount they’re claiming
• The creditor has secured assets that cover the value of the debt
• The paperwork contains errors or was not properly delivered
• The debt is already being managed through a formal repayment plan or insolvency arrangement

Every case is different, and the grounds for Challenging a Statutory Demand depend on the specific facts of your situation. If you’re unsure whether you have a defence, our solicitors can quickly review the demand and advise on whether an application to set it aside is likely to succeed.

What Happens if I Ignore a Statutory Demand?

If you ignore a Statutory Demand and do not respond within the specified timeframe, the creditor may take the next step and issue insolvency proceedings. For individuals, this means applying to the court for a bankruptcy order. For companies, it could lead to a winding-up petition and the forced closure of the business.

At that stage, the process becomes far more serious and difficult to defend. Your assets, income or business operations may be at immediate risk, and you could lose control over how the matter is resolved.

Courts expect prompt action, so even if you believe the demand is incorrect or unjust, doing nothing is never advisable. Taking early legal advice gives you the best chance to resolve the matter before it escalates and may prevent insolvency altogether.

The matter may settle without any Court application actually being made. If you are a company and an application is necessary, then (in addition to our fee cited) you will need to pay Court application fee, currently £95 (VAT-free) (the Court may revise this figure).  There is no Court fee for any application relating to individuals. A guide to civil court fees can be found here.

If the matter does not settle, and/or a Court hearing occurs, then, the normal rule the Court applies is that the “loser pays the winner’s legal costs” – meaning if you succeed at least some of your legal costs may (and normally would) be recoverable from your opponents.

It is worth bearing in mind that:

• If you have paid us, we will pay to you any recovery that is actually obtained and received by us
• Any actual recovery may not cover your outlay on legal costs, even if you succeed
• Your opponent may be ordered to make a payment, but may fail to do so. That will leave you to consider enforcement action, which we will advise on if necessary
• Your opponent may appeal any outcome
• If you fail to succeed it is possible that some of your opponent’s legal costs may (and normally would) be payable by you
• You still have to pay us regardless of whether or not you succeed

If you fail to succeed, or otherwise (depending on how the circumstances actually turn-out), then further work (i.e. beyond what is listed) may ensue. Any such work is not included in the fixed-retainer – although you may ask us to do such work for you on the terms (and costs) which will be outlined in your engagement with us.

There is more about our fees on our website here

If you have any questions, require any further information, or would like to engage us on the T&Cs linked Our Terms in the footer below, please don’t hesitate to Contact Us.

How Long Does it Take to Set Aside a Statutory Demand?

You usually have only 18 days from the date of service to apply to the court to have a Statutory Demand set aside. If you miss this deadline, the creditor may proceed with bankruptcy or winding-up action, so acting quickly is essential.

Once instructed, we would typically prepare your application within a few days. This includes reviewing your case, drafting the necessary documents, and submitting the application to court. The court will usually list the application within a few days, although the actual hearing date may take several weeks—or in some cases, a few months—depending on court availability.

During this period, we can continue negotiating with the creditor to try to resolve the issue without a formal hearing.

If you need to challenge a Statutory Demand or apply to the court to set aside a Statutory Demand, our legal team is ready to help you take prompt and effective action.

Our experienced Dispute Resolution Solicitors have a strong track record in helping clients resolve disputed debts and defend against wrongful or unfair demands. We’ll guide you through the process from start to finish—ensuring your application is thoroughly prepared, supported by evidence, and submitted within the strict court deadlines.

As local Solicitors in Stockport, we support clients across Greater Manchester and beyond, including areas such as Altrincham, Wilmslow, Sale, Poynton and Marple. With offices in Bramhall, Cheadle, Hazel Grove and Heald Green, we are easily accessible for in-person appointments, and we also offer virtual consultations for clients who prefer remote support.

We understand how important it is to act quickly and with confidence. If you’ve received a Statutory Demand and want to know your rights, contact us today to speak with one of our solicitors and find out how we can help.