Creditor’s Statutory Demand Resolution Services
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Get a fast, free, confidential consultation to resolve a creditor’s statutory demand. Corporate Lifeline provides a judgment-free response strategy for your peace of mind. Contact us for instant support.
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Settle Your Creditor’s Statutory Demand With Corporate Lifeline

It can be daunting to receive a creditor’s statutory demand for payment of debt. Feeling worried about the consequences is natural, so it’s essential to act fast. The sooner you do, the sooner you can reach an amicable resolution.

Once you receive a statutory demand you must pay the creditor. However, you can also secure or compound the amount owed if there’s an agreement with the creditor.

Our team of independent advisors will provide you with expert advice. We’ll review the claim and assess the amount of the debt before responding to a statutory demand.

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Solutions for a Creditor’s Statutory Demand

Several resolutions are available. You must act within 21 days otherwise your business is trading while unable to pay debts (insolvency).

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Repay the Debt

If you’re able to repay the debt, do so immediately. If you need assistance you can use our finance funding solutions for support, such as applying for a short-term loan.

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Negotiate a Settlement

It’s possible to reach an amicable agreement with your creditor. Speak to one of our independent advisors to understand how to negotiate a solution.

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Raise a Dispute

If you disagree with the debt you can attempt to set aside the demand. To do this you’ll need to make a court application to raise a genuine dispute. Talk to one of our independent advisors directly for confidential support.

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OUR FOUR-STEP ADVISORY PROCESS

We used a simplified and transparent advisory process to offer you essential guidance
1

Free Consultation

We’ll meet to discuss your current situation and the problems facing your business. Our assessment is judgment-free and designed to offer you a way out.
2

Financial Assessment

Our advisors will consider your business processes and finances. We’ll investigate your concerns and understand your preferred solution.

3

Your Strategic Response

After identifying your issues, we’ll discuss the ideal way to resolve this matter. This is a transparent discussion and aimed directly at finding a solution that works for you.
4

Make Your Response

The final step fixes your dilemma. We’ll work with you and external creditors to reach an amicable solution for all concerned. Then you can continue with
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YOUR QUESTIONS ANSWERED

What is a Creditor’s Statutory Demand?

If your business owes debt then this formal payment request is issued under 459E of The Corporations Act 2001 (Cth) (Act). You may receive this in person or via post. If you receive this demand then you must take it seriously and seek to repay the debt.

The most immediate solution is to repay the debt. However, if this isn’t possible then you should request legal assistance to determine your best course of action.

Is the Statutory Demand Genuine?

You’ll know the demand is valid if you receive the creditor’s statutory demand form. This is the Form 509(H). It’ll include information highlighting: 

  1. Your business and the creditor
  2. The signature from the creditor to confirm authenticity
  3. Your business and full address
  4. The amount you owe and when to pay the debt
  5. How to proceed

You’ll have 21 days to repay the debt. Repaying the amount is the ideal course of action, but discuss with our independent advisors for alternative solutions.

What’s a Notice of Application for a Winding-Up Order?

If the creditor believes your business to be insolvent (trading while unable to pay debts), they can file for a notice of application for winding-up order.

The creditor will make this to a court who may appoint a liquidator to your business. Their task is then to sell off your business’ assets. This money will be to repay creditors.

When Can a Statutory Demand Be Made?

If you owe at least $4,000, a creditor can issue a demand under The Corporations Act 2001 (Cth). Other reasons can include if you (the debtor) are a business and there isn’t a genuine dispute about the debt.

What Are the Defences to a Creditor’s Statutory Demand

If you’re unhappy with this situation the most common course of defence is through a dispute. This is to challenge the debt and its total. To do this you’ll need a genuine reason to raise a dispute with the creditor. If you have a genuine reason then you may be able to overturn the demand.

Otherwise, the ideal course of action is to pay the debt as soon as possible.

Is the Amount Owed an Overstatement?

You may wonder if the amount you owe is an overstatement. To verify this you can check your business’ finance records. This way you can backcheck your records to determine if the creditor claims are accurate.

If they’ve claimed an excess amount, you can raise this as part of a dispute.