How do I change the default status of a story in Jira agile?

When I create a story it gets placed in the backlog, but the status defaults to "accepted into iteration" which is the first step in our workflow. I want it to default to something else as I it really is not "accepted into iteration" 

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You need to edit the workflow and change the first state to what you want it to be (it's the state at the end of the "create" transition).  It's not a "default" really, it's what "create issue" does...

Thanks Nic - I did that, but is there a way that the new status doesn't have to show in my work mode but will show in my plan mode when the story is in my backlog. I want my work mode to start with "accepted into iteration", but the status before that should not show in work mode, but the stories are visible to me in my plan mode? Hope that makes sense.

Now that's a totally different question! But it is clear, and it is possible. Just drop the new status off the board by removing it from the columns. The downside of doing that is that it won't appear on your scrum board - you can plan the issues, drag them into the sprint, start the sprint, and then go to work mode and see an empty board. In places where I've suggested that setup before, they've done a couple of things - included "bulk transition from pre-sprint to ready-to-develop" as part of the planning meeting, and/or created Kanban boards that do have the pre-sprint status on them, and use them to do the "pick next piece of work to start in sprint" process.

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