If ignored, a statutory demand can be a death sentence for your company.
If you don’t pay the debt or apply to a court within 21 days, your company is presumed insolvent and may be liquidated. Act now!
A creditor’s statutory demand for payment of a debt (Form 509H) is the corporate equivalent of a bankruptcy notice. It requires a company to pay a debt within 21 days or apply to a court to set the demand aside. A company that does neither will be presumed insolvent and the creditor will then be able to issue winding up proceedings.
How we can help
At an assessment we will give you advice on your prospects of having the demand set aside. If the matter cannot be resolved by negotiation, we offer fixed price court representation.
Assessment $350 + GST
If you dispute the debt or believe you have an offsetting claim against the creditor, we will review the situation and advise you of your chances of having the demand set aside.
Court hearing $3,000 + GST
If the matter is not resolved by negotiation, we will:
- file your application and supporting affidavit at the Supreme Court of Western Australia;
- attend one directions hearing;
- prepare written legal submissions; and
- prepare for and represent your company at the court’s hearing of your application.
If you succeed, the court will usually order the creditor to pay your legal fees assessed by reference to the court’s scale.
Quoted fees do not include court filing fees ($1,319 or $2,568), company searches ($25 per search) and any other disbursements.
Negotiated settlement $3,000 + GST
- prepare an affidavit explaining why the demand should be set aside; and
- before incurring court fees, send a copy to your creditor and invite them to withdraw the demand.
If your affidavit raises a genuine dispute, a sensible creditor will withdraw the demand to avoid the risk of paying your legal costs.
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