What is a Statutory Demand?
In Australia, a statutory demand is a formal written notice issued by a creditor to a debtor company, requiring the payment of a debt that is at least $2,000. This demand is governed by Section 459E of the Corporations Act 2001. The debtor company has 21 days to comply with the demand, either by paying the debt, reaching a settlement, or applying to the court to have the demand set aside.
AT STB we specialize in providing fast, easy, and professional advice to business owners who have received a statutory demand. Our consultation can take just 20 mins or continue as long as you need.
- Book a free consultation In-person, over the phone or video call.
- Consultations ranging from 20 minutes to 1 hour to Identify the situation with our team of experts.
- STB will provide the most comprehensive solution.
- Our service is Australia-wide.
What does it mean?
Receiving a statutory demand in Australia is a serious matter. It signifies that the creditor is taking steps to recover the debt and, if the demand is not met within 21 days, the creditor may apply to the court to wind up the debtor company on the grounds of insolvency. This can lead to the liquidation of the company’s assets to satisfy the debt. Therefore, it is crucial for the debtor company to address the statutory demand promptly and seek professional advice to avoid severe legal and financial consequences.
Statutory Demand Response Benefits:
- Immediate action plan: Quickly address the demand to avoid escalation.
- Legal and financial assessment: Evaluate the validity and options for resolution.
- Prevent winding-up: Protect your business from forced liquidation.
- Maintain operations: Ensure your business continues to operate smoothly.
How we solve your problems?
- Book a free consultation In-person, over the phone or video call.
- Consultations ranging from 20 minutes to 1 hour to Identify the situation with our team of experts.
- STB will provide the most comprehensive solution.
- Our service is Australia-wide.
During such trying circumstances, navigating the next steps can be daunting, especially when your company faces financial hardship.
Acting swiftly is crucial in order to potentially avoid liquidation, administration, being served a DPN. or facing many other stressful outcomes. So, our invaluable guidance in comprehending your company’s available options immediately.