How do you withdraw a statutory demand

[lanethumb]

I was served with a statutory demand last week and so I wrote to the "creditor" to ask them to withdraw it. They have sent me a letter yesterday saying that it is withdrawn, however, is this sufficient? What are the formalities of withdrawing a statutory demand? The Insolvency Rules say nothing! Should the creditor submit the form 6.4 and 6.5?

[honeybee13]

Hello and welcome to CAG.

 

I'll move this to the legal forum, hopefully the guys will be able to tell you.

 

My best, HB

[unclebulgaria67]

I was served with a statutory demand last week and so I wrote to the "creditor" to ask them to withdraw it. They have sent me a letter yesterday saying that it is withdrawn, however, is this sufficient? What are the formalities of withdrawing a statutory demand? The Insolvency Rules say nothing! Should the creditor submit the form 6.4 and 6.5?

 

Just keep the letter. You don't have to do anything.

 

The company chasing the debt, just issue the SD. It has not touched a court. The only way a court becomes involved, is if they receive a set aside request or the claimant submits a bankruptcy petition.

[lanethumb]

Thank you for your help but I would like to know where the authority for that is? It does not say in statute that the 'creditor' can withdraw in writing. Is there a case on this? I just want to be certain, otherwise I may run out of time to apply to set it aside.

[will lliw]

Good info below and definitely stick to the timescales if you decide to apply

 

 

http://www.bis.gov.uk/insolvency/Publications

[lanethumb]

If a creditor withdraws their statuory demand in writing, can they still issue a bankruptcy petition?

 

I note that a bankruptcy petition can only be made if a statutory demand has not been compied with. As there is not procedure for withdrawal, nor does the statutory demand actually say it can be withdrawn, what prevents the creditor from saying that the withdrawal has no legal effect and the statutory demand has not been compied with? Is there any case law on this point?

 

Should I make an application to set it aside anyway? or is that dangerous as the court could set a date for a hearing?

[unclebulgaria67]

If you have a letter stating that the SD was withdrawn, it is unlikely that they would succeed with a bankruptcy petition. I would also expect that they would get into trouble, for abuse of the insolvency process.

 

My personal view is that they would need issue another SD, if they wanted to take bankruptcy forward again.

 

If you want another view, there are plenty of freephone helplines. e.g bankruptcy-insolvency.co.uk

[42man]

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