Statutory Demand Helpline

A statutory demand is issued under section 459 of the corporations act. The statutory demand can be issued by any creditor of your company however they are commonly issued by the ATO. The statutory demand was intended as the first step in the insolvency process however they are regularly used by creditors as a way of collecting debts.

For a demand to be valid it needs to have been sent by a creditor who has a tangible debt that is due and payable. The debt has to be above the statutory minimum of $2000 and cannot be a contingent debt. There is a prescribed form which has to be used for the demand and it must clearly state the debtor company's name and registered address.

If you receive a statutory demand then there is no time to be complacent. If you don't take action within 21 days of the date of the demand then you risk your company being placed into liquidation. If you don't know what to do call our helpline on.

What is a Statutory Demand

What are my options if I receive a statutory demand? If you receive a statutory demand then you have 2 options;

1) You settle the debt in full.

2) You dispute the debt and apply to the court to set aside the demand.

If you don't take one of these actions within 21 days then you risk having the creditor move to lodge a winding up application that would result in the appointment of liquidators.

If you have received a statutory demand and you are unsure of what to do next then you need to call our statutory demand helpline and we can take you through your options. All calls to our helpline are free of charge.

The statutory demand helpline website is run by Jamiesson Louttit & Associates a Sydney based firm of insolvency practitioners.

 

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