Business rule not working!!

Business rule not working!!

Hi,
 
I created new status called 'Submitted' and tried to set is as default status.
There was no direct function to do that, so I set the business rule to change status to 'Submitted' when new requests come.
 
I researched on this and found out that when you create a request through the New Request Form, the values set in the form take precedence over the ones set through the business rule.
 
Does this mean I can never apply business rule over Status?
Is there any way to make custom status value as default? 
 
Thanks,

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