Received a demand? / Statutory demand
Received a statutory demand?
Your company has 21 days from service to pay, reach terms with the creditor, or file and serve an application to set the demand aside. The court cannot extend the time to apply. Call 1800 776 529 today, or send us the demand now.
On this page: What it means Your options Setting it aside How we help Enquire
What it means
A creditor’s statutory demand is a formal notice under the Corporations Act 2001 (Cth). If your company does not deal with it within 21 days, it is presumed to be insolvent, and the creditor can apply to have it wound up. That presumption makes the next steps much harder to defend, so the 21 days are the time to act.
Your options within the 21 days
- Pay the amount demanded, and get written confirmation that the demand is withdrawn.
- Reach terms the creditor accepts in writing, for example security or an instalment arrangement. An informal promise to pay does not stop the clock.
- Apply to the court to set it aside. The application and a supporting affidavit must be filed and served on the creditor within the 21 days.
When a demand can be set aside
- A genuine dispute about whether the debt exists, or about the amount.
- An offsetting claim: a genuine claim your company has against the creditor, even one arising from a different transaction.
- A defect in the demand that would cause substantial injustice, or some other reason the demand should be set aside.
If the dispute only covers part of the debt and the rest is still $4,000 or more, the court can vary the demand rather than set it aside.
Send us these straight away
- The demand and the affidavit that came with it.
- The date it arrived and how (post, hand delivery, email).
- The contract, invoices and statements for the debt.
- Every email or message showing that the debt was disputed before the demand, and any claim your company has against the creditor.
How we help
We read the demand that day where we can, tell you whether there are grounds to set it aside, and give you a quote. If an application is needed, we prepare and file it in time. If paying or settling is the better course, we negotiate the terms in writing.
Law referred to
- Corporations Act 2001 (Cth) ss 459C(2)(a), 459G, 459H, 459J.
- David Grant & Co Pty Ltd (rec apptd) v Westpac Banking Corporation (1995) 184 CLR 265.
Last reviewed: October 2026, by a Victorian solicitor with a current practising certificate. This page is general information about the law in Victoria as at October 2026. It is not legal advice about your circumstances.
Send us the demand
Send the demand, or call today. We reply within one business day, by phone, email or text, whichever you prefer.
What happens next
- Send the form, or call 1800 776 529.
- We read the demand and your documents.
- We tell you whether there are grounds to set it aside, and give you a quote.
Phone: 1800 776 529
Email: info@lettersofdemand.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199. We act across Victoria by phone, email and online.