Statutory Demand

A statutory demand is also commonly referred to as a::

• Section 459E Statutory Demand
• Stat Demand
• 459 Demand

A statutory demand can only be issued by a creditor if the debt is not disputed and is due and payable. The creditor who serves a statutory demand must sign a certificate that they believe there is no genuine dispute as to the debt.

A statutory demand can be issued immediately after the payment becomes due. If, for instance, credit terms require payment within 30 days and the debt has fallen due then the creditor can issue a statutory demand immedialty after that 30 days period.

If a Statutory Demand has been received the company has 21 days from the date of the demand to do one of the following:

• Pay the debt in full; or
• File an application in Court to have the statutory demand set-aside on the basis of a genuine dispute.

 If you wish to dispute the statutory demand you must apply to Court strictly within 21 days of the demand being filed and served along with all supporting affidavits. If you don't respond by filing the appropriate defence in Court within 21 days of the company will be deemed to be insolvent.

If you have received a statutory demand your company could be wound up by the Court and an Official Liquidator could be appointed in as little as 8 weeks of the demand being served on you.

In respect to business debt generally the statutory demand is one the most powerful business debt collection tools available to a creditor. The statutory demand is commonly used by trade suppliers, the Tax Office and workers' comp insurers.