Statutory Demands and what to do if you get one

[cojak]

If the scheme was based in the IoM and you don’t consider it a loan, then you can just dispute based on that.

Look here at how to challenge: Make and serve a statutory demand, or challenge one : Challenge a statutory demand - GOV.UK

And here is form IAA... Form IAA: Apply to the court about an insolvency issue ('application notice') - GOV.UK

How to apply
Download and fill in form IAA.

Make 3 copies of the completed form and either post them to the court named on your statutory demand or give them to the court in person.

What happens next
You’ll usually hear back from the court within 10 working days of applying.

If the court does not agree with your application, it can give the creditor permission to issue a bankruptcy petition against you.

If the court agrees with your application, your case will be passed on to a bankruptcy registrar. They’ll look at your case and arrange a hearing.

What happens at the hearing
Both sides will present their case to a registrar or judge. They’ll either make a decision then, or ask you and the other party to give more evidence at another hearing.

You’ll usually get a decision at the end of the final hearing.

If you win your case, you’ll get an order from the court setting aside the statutory demand. The deadline for paying the debt will be suspended.

If you lose, you’ll have to pay back your debt within the 21 day time limit. The creditor can apply to bankrupt you if you do not pay in time and your debt is £5,000 or more.

Just to note, set-asides are the only things we’ve heard about in these types of cases. It’s almost as if judges are annoyed at SD’s being abused in such a fashion...

Update:
But first, call the court to find out if a Statutory Demand has actually been raised against you in the first place.

[cojak]

The key thing that needs to happen if you receive a SD, is just to be able to prove that there's a genuine dispute over the alleged debt.

This could take the form of:

1) Disputed numbers

2) Disputed paperwork

3) Dispute for any other reason.

The key thing is just being able to fully claim that there is a dispute, and be able to state why. Providing you can do that, then a judge should throw it out. It's worth noting though, that if the judge does throw it out, at that point your solicitor can also apply for costs against the claimant.

Remember a SD can never legally be used to try and pursue payment of a disputed debt. SD's should only be used to try and enforce payment of an accepted debt.

- MrO666
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Statutory Demands have fixed (and very short) timescales - if you have received one you have less than 2 weeks to deal with it and hiding away without responding will result in whoever is issuing the demand winning.

The one thing you can't do is ignore it - Statutory Demands - Everything You Need to Know! | Helix Law has a decent overview of what you need to do but really is:-

1) Don't ignore it
2) Get all your paperwork
3) Find a solicitor and dispute it

Also reading this website Statutory Demands - Debt Collection I will add

4) Don't use time as an argument that the debt is invalid, the time frame is 5 / 6 years from the time the money was demanded not the date you received the money.


- eek

(Thanks to MrO666 and eek for this post.)