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Issuing & Setting Aside A Statutory Demand

Dealing With Statutory Demand

A statutory demand is a legal document that requires a debtor to pay an outstanding debt within 21 days. The document can be served either by post or personally by the creditor, and must include details of the amount of debt, who it is owed to and how it can be paid. If the debtor does not comply with the demand, then the creditor may take legal action against them in court.

At Stonegate Legal, our statutory demand lawyers understand that dealing with a statutory demand can be daunting for those on the receiving end. We provide our clients with detailed advice on their options when facing a statutory demand, including issuing or setting aside a demand.

Our statutory demand lawyers have extensive experience in dealing with all aspects of statutory demands, from issuing them to representing clients in court proceedings if necessary. Our experienced solicitors will provide you with support throughout the process and ensure that your rights are protected at all times.

What is Statutory Demand?

Help With Statutory Demands | Stonegate Legal

Expert legal support for creditors and debtors in issuing or defending statutory demands.
This video breaks it down with simple examples for better understanding.

Issuing a Statutory Demand

A creditor can issue a statutory demand to recover an outstanding debt. The demand must include details of the debt’s amount, who it is owed to, and how it can be paid. The debtor must pay the debt within 21 days, or the creditor may take legal action against them in court.

At Stonegate Legal, our statutory demand lawyers have extensive experience in dealing with all aspects of issuing a statutory demand. Our statutory demand lawyers will provide our clients with detailed advice on their options and ensure that their rights are protected throughout the process.

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Setting Aside a Statutory Demand

If a debtor wishes to dispute a statutory demand, they may apply to set it aside in court. This means that the demand will no longer be legally enforceable and the creditor will not be able to take legal action against them until further notice.

Our statutory demand lawyers understand that dealing with a statutory demand can be overwhelming for individuals and businesses alike. We provide our clients with detailed advice on their options when facing a statutory demand, including setting aside a demand if necessary. Our experienced solicitors will provide you with support throughout the process and ensure that your rights are protected at all times.

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If you require assistance with issuing or setting aside a statutory demand, our team of lawyers is available to provide you with the necessary aid.

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Providing Support with Every Step of the Way

At Stonegate Legal, we understand that dealing with a statutory demand can be a difficult process. Whether it is issuing or setting aside a demand, you can count on us to be there for you.

Issuing a Demand

Under Section 9 of the Corporations Act 2001 (Cth), a company must pay $4,000 if it owes a debt of more than $2,000. To demand payment for debts greater than $4,000, a specific form (509h) must be used with accurate information to avoid challenges by the debtor in court. Liquidation is not easily ordered by courts, so attention to detail is essential in the process.

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Setting Aside a Demand

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Meet Our Statutory Demand Lawyers

FAQ

Statutory Demand FAQ with Answers

If a company ignores a statutory demand, the creditor can apply to the court to wind up the company. The company is presumed insolvent, and a liquidator may be appointed to take control of the business and distribute its assets.

Yes, a company can apply to set aside a statutory demand if there's a genuine dispute about the debt, a valid offsetting claim, or a formal defect causing substantial injustice. The application must be filed within 21 days of service.

A genuine dispute exists if there is a real, not spurious, disagreement about the existence or amount of the debt. It must be supported by evidence in an affidavit and is grounds to apply to set aside the demand under section 459H.

Under section 109X of the Corporations Act 2001, a statutory demand must be served by post, personal delivery to the registered office, or handed to a director in Australia. Proper service must be evidenced by an affidavit of service.

As of current legislation, the minimum debt for issuing a statutory demand is $4,000. The amount must be due and payable, and if reduced by dispute or offsetting claim below this threshold, the demand can be invalidated.

Yes, a creditor can withdraw a statutory demand voluntarily before expiry of the 21-day response period. This is usually done by written notice and may form part of negotiated settlements between creditor and debtor.

A statutory demand with formal defects may be set aside if it causes substantial injustice. Courts consider errors in the form, amount, or supporting documents serious enough to invalidate the demand under section 459J.

An affidavit is required if the debt is not a judgment debt. It must state that the debt is due and payable and must comply with all legal requirements. Omission or inaccuracy can render the demand defective.

If not complied with, a statutory demand leads to a presumption of insolvency. This allows the creditor to apply for the company's winding up, potentially resulting in liquidation and the appointment of a liquidator.

Yes, a statutory demand may include more than one debt, provided the total exceeds $4,000 and all debts are due and payable. Each debt must be detailed clearly, and supported by appropriate documentation or an affidavit.

If a company ignores a statutory demand, the creditor can apply to the court to wind up the company. The company is presumed insolvent, and a liquidator may be appointed to take control of the business and distribute its assets.

Yes, a company can apply to set aside a statutory demand if there's a genuine dispute about the debt, a valid offsetting claim, or a formal defect causing substantial injustice. The application must be filed within 21 days of service.

A genuine dispute exists if there is a real, not spurious, disagreement about the existence or amount of the debt. It must be supported by evidence in an affidavit and is grounds to apply to set aside the demand under section 459H.

Under section 109X of the Corporations Act 2001, a statutory demand must be served by post, personal delivery to the registered office, or handed to a director in Australia. Proper service must be evidenced by an affidavit of service.

As of current legislation, the minimum debt for issuing a statutory demand is $4,000. The amount must be due and payable, and if reduced by dispute or offsetting claim below this threshold, the demand can be invalidated.

Yes, a creditor can withdraw a statutory demand voluntarily before expiry of the 21-day response period. This is usually done by written notice and may form part of negotiated settlements between creditor and debtor.

A statutory demand with formal defects may be set aside if it causes substantial injustice. Courts consider errors in the form, amount, or supporting documents serious enough to invalidate the demand under section 459J.

An affidavit is required if the debt is not a judgment debt. It must state that the debt is due and payable and must comply with all legal requirements. Omission or inaccuracy can render the demand defective.

If not complied with, a statutory demand leads to a presumption of insolvency. This allows the creditor to apply for the company's winding up, potentially resulting in liquidation and the appointment of a liquidator.

Yes, a statutory demand may include more than one debt, provided the total exceeds $4,000 and all debts are due and payable. Each debt must be detailed clearly, and supported by appropriate documentation or an affidavit.

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