ABSTRACT
In the case of a statutory demand served upon an individual debtor, the method of challenge is set out in IR 6.4: an application should be made in the prescribed form with an affidavit in support within 18 days of service of the demand. Unless the court dismisses the application without further enquiry, the application will be set down for hearing on notice to the creditor. Under IR 6(5)(4), there are four arguments for setting aside a statutory demand: (a) the debtor has a counterclaim, set off, etc which equals or exceeds
the debt; (b) there are substantial grounds for disputing the debt; (c) the creditor has security for the debt; (d) there is some other reason for setting aside the demand.
