Application to Set Aside Statutory Demand Successfully Opposed
KANGS has successfully assisted a client defeat a ‘Set Aside Application’ issued by an individual who owed him a considerable amount of money pursuant to a settlement agreement.
Our client served a Statutory Demand against an individual in respect of a debt arising under the settlement agreement. Subsequently, the debtor applied to have the Statutory Demand set aside.
Stuart Southall of KANGS explains the manner in which this result was achieved.
The Circumstances
- Due to financial investment advice provided by an individual who proved to be an unregulated financial advisor, our client suffered substantial six-figure financial losses.
- By way of mutual agreement to resolve the debt without recourse to any form of court action, the debtor agreed to repay the amount due by way agreed stage payments for a period of five years.
- For three years the debtor made regular payments, albeit frequently below the agreed monthly amount and during this period he constantly sought to mislead our client as to his financial position.
- In 2024, as the result of continuing breaches of the agreement by the debtor, our client instructed KANGS to assist in the recovery of the amount outstanding.
How we supported our client every step of the way
Preparation of Settlement Agreement.
Having taken detailed instructions from our client upon the circumstances leading to the debt and his preferred manner of proceeding, we:
- negotiated and agreed terms for settlement with the debtor,
- prepared a Settlement Agreement which was signed by both parties.
Preparation and Service of a Statutory Demand.
Following the debtor’s default in honouring the Settlement Agreement, we:
- advised our client that the most appropriate course of action would be to issue a Statutory Demand, which would demand payment of the outstanding debt within twenty-one days. If the debtor failed to respond, our client could proceed with filing a bankruptcy petition.
- prepared and served the Statutory Demand on the debtor.
Opposing the Debtor’s Court Application.
Despite having signed the Settlement Agreement and making monthly payments, the debtor disputed his indebtedness and applied to the Court to have the Statutory Demand set aside alleging lack of mental capacity on his behalf and that no debt existed.
In these circumstances, our team in preparation for the Hearing:
- attended our client advising upon the steps to be taken in order to resist the debtor’s Application to the Court,
- prepared and submitted to the court an extensive Witness Statement by our client detailing his position, the events which had occurred, including the signing of the Settlement Agreement and the completed stage payments, which was supported by the relevant contemporaneous evidence,
- conducted negotiations with the debtor in an endeavour to resolve the issue, which proved fruitless,
- identified and instructed an appropriately experienced counsel to represent our client at the Hearing.
- attended requisite conferences with both our client and counsel.
The Successful Hearing
Following consideration of the submissions made to the court by both parties it decided in favour of our client and passed Judgment as follows:
- the debtor’s application was dismissed,
- our client was given permission to proceed with issuing a bankruptcy petition against the debtor; and
- our client was awarded costs on an indemnity basis, thereby allowing him to recover all of the costs which he had been forced to incur as the result of the debtor’s default.
Naturally, our client was absolutely delighted that the debtor’s unjustified endeavours to avoid payment had been overcome and that he was now in a position to further his recovery action.
How Can We Assist You?
The team at KANGS is nationally renowned for its meticulous approach to organising, preparing, and representing clients whatever the circumstances, whether dealing with fraud litigation or commercial disputes.
Our Team is also accustomed to supporting clients involved in insolvency proceedings of every nature.
Should you become involved in any form of insolvency, liquidation or bankruptcy proceedings, our team will be delighted to hear from you. Please do not hesitate to contact us using the details below:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through live conferencing or telephone.
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