Q&As

Where a claimant issues a statutory demand to enforce a judgment debt after 28 days, can the debtor/defendant (individual) apply to set aside the statutory demand or apply to the court to vary the payment terms of the judgment debt after the statutory demand has been served?

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Published on LexisPSL on 13/09/2017

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Where a claimant issues a statutory demand to enforce a judgment debt after 28 days, can the debtor/defendant (individual) apply to set aside the statutory demand or apply to the court to vary the payment terms of the judgment debt after the statutory demand has been served?
  • Setting aside
  • Varying payment terms
  • Time limits

Where a claimant issues a statutory demand to enforce a judgment debt after 28 days, can the debtor/defendant (individual) apply to set aside the statutory demand or apply to the court to vary the payment terms of the judgment debt after the statutory demand has been served?

For the purposes of this Q&A we have limited our research to cover the situation in which the defendant participated in the proceedings.

Setting aside

An application to set aside a statutory demand can be made under Rule 10.4 of the In (IR 2016), SI 2016/1024.

The grounds for setting aside a statutory demand are provided in IR 2016, SI 2016/1024, r 10.5(5). They are:

  1. the debtor has a counterclaim, set-off or cross-demand in an amount which equals or exceeds the debt

  2. the debt is disputed on substantial grounds

  3. the creditor is a secured creditor who has not waived their security, or

  4. the court is satisfied, on other grounds, that the statutory demand should be set aside

In relation to ‘other grounds’ (IR

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