Application to Set Aside Statutory Demand
Letter to the county court or High Court applying to set aside a statutory demand served under the Insolvency Act 1986, and the supporting grounds.
When to use this template
Use this when you have been served with a statutory demand (SD) under the Insolvency Act 1986, the debt is disputed, the creditor owes you a counterclaim exceeding the demand, or there are procedural defects in the demand. You must apply to set aside the demand within 18 days of service (in practice, apply as soon as possible — a court can extend the time only in exceptional circumstances). The SD is the precursor to a bankruptcy petition, which can be presented if you do not pay within 21 days.
When NOT to use this template
Do not ignore a statutory demand — if you do nothing and the 21-day payment period expires, a creditor can present a bankruptcy petition. If you cannot dispute the debt and cannot pay, take urgent insolvency advice (Individual Voluntary Arrangement, bankruptcy or debt relief order may be more appropriate). This template is for individuals — if you are a company, a winding-up petition procedure applies.
Legal Basis
Insolvency Act 1986, ss.267–268 (statutory demand for individuals as foundation for bankruptcy petition); Insolvency (England and Wales) Rules 2016 (IR 2016), r.10.5 (application to set aside statutory demand). Grounds for setting aside under r.10.5(5): (a) disputed on substantial grounds; (b) counterclaim, set-off or cross-demand; (c) secured debt; (d) court is satisfied on other grounds.
Common Mistakes to Avoid
- ✗Missing the 18-day deadline for applying to set aside — courts are strict about this
- ✗Not filing the application at the correct court — use the county court for your home address (Insolvency jurisdiction)
- ✗Basing the application solely on financial hardship rather than a genuine dispute of the debt
- ✗Not including a witness statement in support of the application
Build Your Letter
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Letter preview
[YOUR FULL NAME (DEBTOR)] [YOUR ADDRESS] [YOUR EMAIL ADDRESS] [DATE OF APPLICATION] The Court Manager [NAME OF THE COURT] [COURT'S ADDRESS] **APPLICATION TO SET ASIDE STATUTORY DEMAND** **Insolvency (England and Wales) Rules 2016, Rule 10.5** **Debtor: [YOUR FULL NAME (DEBTOR)]** **Creditor: [CREDITOR'S NAME]** --- Dear Sir or Madam, I am the debtor named above. I write to make a formal application pursuant to Rule 10.5 of the Insolvency (England and Wales) Rules 2016 to set aside the statutory demand served on me by [CREDITOR'S NAME]. **The Statutory Demand** The statutory demand was served on me on approximately [APPROXIMATE DATE THE DEMAND WAS SERVED]. It claims the sum of £[AMOUNT DEMANDED (£)] in respect of: [BRIEF DESCRIPTION OF THE ALLEGED DEBT]. **Grounds for Setting Aside** I apply to set aside the demand on the following grounds: [GROUNDS FOR SETTING ASIDE THE DEMAND] **Summary of Facts** [SUMMARY OF THE FACTS SUPPORTING YOUR APPLICATION] **Counterclaim / Set-Off (if applicable)** I have a counterclaim / set-off against the creditor in the sum of £[COUNTERCLAIM / SET-OFF AMOUNT (£) — IF APPLICABLE] arising from: [DESCRIPTION OF COUNTERCLAIM / SET-OFF — IF APPLICABLE], which equals or exceeds the sum demanded. **Application** I ask that the Court: 1. Set aside the statutory demand in its entirety; and 2. Award the costs of this application against the creditor. I enclose / attach a witness statement in support of this application. Yours faithfully, [YOUR FULL NAME (DEBTOR)]
Unfilled fields appear as [FIELD NAME]. Review the letter carefully before sending. This template is a starting point — adapt it to your specific circumstances.