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Setting aside a statutory demand

You have 18 days to apply to set aside a statutory demand — miss it and bankruptcy proceedings can follow.

Statutory Demands3 min readReviewed July 2026

Grounds include a genuine dispute over the debt, a counterclaim of similar size, or the debt being secured.

You apply to the court that would hear a bankruptcy petition. Getting help quickly is important — the time limits are short and strict.

Even where set aside isn't possible, engaging with the creditor before a petition is issued often prevents bankruptcy altogether.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.

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