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A statutory demand acts as a way to create a situation where a company that owes money to creditors cannot delay matters in paying the creditor. This is because there are serious consequences for ignoring a statutory demand, with the possibility of the company being ordered to be wound up.
It is important to note that a statutory demand does not force a company to comply with it. They may instead choose to be presumed insolvent and then prove they are actually solvent to avoid being wound up.
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Let’s talk about your situation confidentially. We will discuss the alleged common assault in detail to understand what happened and be able to tell you if we can help or not. Get the process started now, by requesting a free call back.
Book appointment with our assault lawyers
If it's clear consulting a solicitor you will help your situation, we can identify the right one for your case and arrange a convenient appointment for you. We will review any documents you send us, and brief the solicitor before you arrive to maximise your time with them.
In depth consultation
At your meeting the solicitor will be able to indicate the outcome they expect to achieve and the legal pathway they would take with you to ensure the best possible outcome based off past cases and experience. Possible defences will be explored and all of your questions answered.
Sound legal advice & pathway forward
Armed with confidence in your criminal lawyer, sound legal advice and a fixed fee quote for representation throughout the process you can then decide if you would like the team to act on your behalf to represent you through the process.
The sooner you act the better.
Leaving things to the last minute makes it more difficult for your legal team to obtain the best possible result.
Lawyers with strata experience
Meet with lawyers who have represented clients with strata cases previously.
Sending a statutory demand
What you need to know
Demands can only be sent by creditors who have a debt which is due and payable. The Corporations Act 2001 states that the debt must be for at least $2,000. If it is for less than $2,000 a statutory demand cannot be issued.
There must also be no genuine dispute as to the existence of the debt or debts. If the debt is a judgment debt as the result of a court outcome, there is a presumption that there is no genuine dispute. Under s 509H of the Corporations Act, when sending a statutory demand it must comply with the following:
If there is more than one debt claimed the statutory demand must specify the total debts claimed and at least indicate the nature of the debt relied upon – e.g. goods supplied and delivered. If this is not done it may result in the statutory demand having a defect. The statutory demand will require the company to pay the debt within 21 days of the date of the demand.
If the debtor company applies to have the statutory debt set aside and succeeds, the court is likely to order the creditor to pay the debtor company’s legal costs.
If the debtor company complies with the statutory demand, pay the monies outstanding, but then enters into liquidation within 6 months of making the payment to the creditor, the payment may be considered unfair preference and the creditor may be required to return the money.
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Recieving a statutory demand
What you need to know
Within 21 days of receiving a statutory demand, a company may make an application to the court to set aside the statutory demand. The creditor is entitled to assume that the debtor has received the statutory demand 4 days after the date on which they posted the demand.
This application to the court can only be made with an affidavit in support of the application and by serving a copy of the application and supporting affidavit on the demanding creditor. There are several possible grounds for setting aside a statutory demand:
Prior to applying to have the debt set aside the company may wish to engage the creditor in negotiations regarding the debt and seek legal advice as to whether they should dispute the debt in court or not.
At court the debt may be set aside entirely or varied. If it is set aside entirely the court will most often order the creditor who served the demand to pay the company’s costs. If the demand is varied the company will generally not be awarded costs.
If the debtor fails to comply with the statutory demand or fails to have the demand set aside, a presumption can be made that the debtor company is insolvent. This presumption can then be used by the creditor to apply to the court to have the debtor company wound up. The company at this point can however show that they in fact solvent to prevent them from being wound up.
Know Your Separation Rights.
Don't let your ex dictate what you are entitled to. You have legal rights, arm yourself with knowledge before negotiating.
Our Separation Lawyers Can Help
Meet with lawyers who understand the system and can easily explain your separation options.
Our Process
FreePhone case assessment
Let’s talk about your situation confidentially. We will discuss the alleged common assault in detail to understand what happened and be able to tell you if we can help or not. Get the process started now, by requesting a free call back.
Book appointment with our assault lawyers
If it's clear consulting a solicitor you will help your situation, we can identify the right one for your case and arrange a convenient appointment for you. We will review any documents you send us, and brief the solicitor before you arrive to maximise your time with them.
In depth consultation
At your meeting the solicitor will be able to indicate the outcome they expect to achieve and the legal pathway they would take with you to ensure the best possible outcome based off past cases and experience. Possible defences will be explored and all of your questions answered.
Sound legal advice & pathway forward
Armed with confidence in your criminal lawyer, sound legal advice and a fixed fee quote for representation throughout the process you can then decide if you would like the team to act on your behalf to represent you through the process.
The sooner you act the better.
Leaving things to the last minute makes it more difficult for your legal team to obtain the best possible result.
Lawyers with strata experience
Meet with lawyers who have represented clients with strata cases previously.
Sending
Sending a statutory demand
What you need to know
Demands can only be sent by creditors who have a debt which is due and payable. The Corporations Act 2001 states that the debt must be for at least $2,000. If it is for less than $2,000 a statutory demand cannot be issued.
There must also be no genuine dispute as to the existence of the debt or debts. If the debt is a judgment debt as the result of a court outcome, there is a presumption that there is no genuine dispute. Under s 509H of the Corporations Act, when sending a statutory demand it must comply with the following:
If there is more than one debt claimed the statutory demand must specify the total debts claimed and at least indicate the nature of the debt relied upon – e.g. goods supplied and delivered. If this is not done it may result in the statutory demand having a defect. The statutory demand will require the company to pay the debt within 21 days of the date of the demand.
If the debtor company applies to have the statutory debt set aside and succeeds, the court is likely to order the creditor to pay the debtor company’s legal costs.
If the debtor company complies with the statutory demand, pay the monies outstanding, but then enters into liquidation within 6 months of making the payment to the creditor, the payment may be considered unfair preference and the creditor may be required to return the money.
Know Your Separation Rights.
Don't let your ex dictate what you are entitled to. You have legal rights, arm yourself with knowledge before negotiating.
Our Separation Lawyers Can Help
Meet with lawyers who understand the system and can easily explain your separation options.
Receiving
Recieving a statutory demand
What you need to know
Within 21 days of receiving a statutory demand, a company may make an application to the court to set aside the statutory demand. The creditor is entitled to assume that the debtor has received the statutory demand 4 days after the date on which they posted the demand.
This application to the court can only be made with an affidavit in support of the application and by serving a copy of the application and supporting affidavit on the demanding creditor. There are several possible grounds for setting aside a statutory demand:
Prior to applying to have the debt set aside the company may wish to engage the creditor in negotiations regarding the debt and seek legal advice as to whether they should dispute the debt in court or not.
At court the debt may be set aside entirely or varied. If it is set aside entirely the court will most often order the creditor who served the demand to pay the company’s costs. If the demand is varied the company will generally not be awarded costs.
If the debtor fails to comply with the statutory demand or fails to have the demand set aside, a presumption can be made that the debtor company is insolvent. This presumption can then be used by the creditor to apply to the court to have the debtor company wound up. The company at this point can however show that they in fact solvent to prevent them from being wound up.
Know Your Separation Rights.
Don't let your ex dictate what you are entitled to. You have legal rights, arm yourself with knowledge before negotiating.
Our Separation Lawyers Can Help
Meet with lawyers who understand the system and can easily explain your separation options.
If you have been charged we are sure you will have lots of questions.
Some of the most popular ones past clients ask are listed below.
Can I dispute a statutory demand?
There are 4 grounds to dispute a statutory ground:
This is disputed by way of applying to court to set aside the demand on the basis of one or more of the above grounds.
When should I contact a debt lawyer?
You should contact a debt lawyer as soon as possible after receiving a statutory demand. It is important to act quickly upon receiving the demand as the consequences of ignoring it can result in your company being wound up. It is also important to fully understand your options: is it better to immediately apply to have the debt set aside? Or is it better to engage in negotiation with the creditor and settle outside of court? A debt lawyer would be able to assist in deciding the best way to proceed.
Can I prepare a statutory demand myself?
You can write a statutory demand yourself but there are very strict requirements that must be met otherwise your statutory demand may be defective and easily set aside. This may also result in costs being awarded for your debtor which you will have to pay. By getting a debt lawyer to assist you in the drafting of a statutory demand you can better ensure that all the requirements have been complied with.
Can I claim legal costs against the debtor?
Australia generally follows a ‘loser pays’ system. If the debtor does not comply with your statutory demand and instead goes to court you may be able to claim costs if the court finds in your favour. If the court does not find in your favour, however, it may award costs against you in favour of the debtor.
What happens if I ignore a statutory demand?
If you ignore a statutory demand for more than 21 days after you have received it there is an automatic presumption that your company is insolvent. The creditor can then use this presumption to apply to court to have your company wound up. At this point the company must show they are solvent or be wound up.
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Some recent outcomes are below.
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Perth man made a claim against his former employer in the Fair Work Commission that he was unfairly dismissed. At the conciliation, we successfully negotiated a fair settlement for Perth man.
Domain Name Surrendered
A company registered a domain name which displayed a website which was confusingly similar to Perth man’s business and website. The company surrendered the domain name and changed its website after receiving letters we wrote on behalf of Perth man.
$3.6 Million Claim Dismissed
Perth man was sued in Perth for refusing to pay $3.6 million after participating in a property auction. After trial in the Federal Circuit Court, the claim was dismissed.
Unfair Dismissal Payout Settled
Perth man made a claim against his former employer in the Fair Work Commission that he was unfairly dismissed. At the conciliation, we successfully negotiated a fair settlement for Perth man.
Domain Name Surrendered
A company registered a domain name which displayed a website which was confusingly similar to Perth man’s business and website. The company surrendered the domain name and changed its website after receiving letters we wrote on behalf of Perth man.
$3.6 Million Claim Dismissed
Perth man was sued in Perth for refusing to pay $3.6 million after participating in a property auction. After trial in the Federal Circuit Court, the claim was dismissed.
Unfair Dismissal Payout Settled
Perth man made a claim against his former employer in the Fair Work Commission that he was unfairly dismissed. At the conciliation, we successfully negotiated a fair settlement for Perth man.
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