Updated October 2026 · Fraser Bond
Legal · Debt
Setting aside a statutory demand
18 daysdeadline
Disputeddebt
Counterclaimgrounds
Homeat risk
In short: A statutory demand is a formal demand for a debt that can lead to a bankruptcy petition (or winding-up for companies) if not paid or dealt with within 21 days. Individuals can apply to the court to set it aside, usually within 18 days of service, on grounds such as the debt being genuinely disputed, a counterclaim or set-off at least equal to the debt, or the creditor holding enough security. Get advice quickly, especially if you own a home, as bankruptcy can lead to its sale.
What to do
1
Note the date servedThe 18-day clock starts.
2
Get adviceFree debt advice or a solicitor.
3
Apply to courtWith a witness statement and evidence.
4
HearingThe court decides whether to set it aside.
Frequently asked questions
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