Call Us:
8197 0105

What’s makes Streeterlaw Sydney lawyers unique?

The most important thing you should know about your team of lawyers and legal staff is that we care.

Back to FAQs

Statutory Demand – Common Mistakes To Avoid

Receiving a Statutory Demand, whether in person or even through the mail, is something you cannot ignore. The Statutory Demand is a powerful document in Australia. Failure to respond to a Statutory Demand within 21 days will be interpreted as meaning your company is insolvent.

Section 95(A) of the Corporations Act provides that a company is solvent
if it is able to pay its debts as and when they fall due. Accordingly, the test as to whether or not a company is insolvent is that it is not
able to pay its debts as to when they fall due. A Statutory Demand is a demand for payment of an unpaid debt over $2000 which is overdue.

You may consider the issuing of a Statutory Demand (sometimes called a ‘stat demand’) to be a scare tactic by a debtor. However failure to respond can quickly be escalated to liquidation proceedings being started.

Learn more about >> Statutory Demand or call Streeterlaw today for legal advice. The quicker you act the better as 21 days can pass very quickly. Facing forced liquidation of your business over a debt is not something you can hope will go away or treat as a minor issue.

Found this article useful? Feel free to share it!

Frequently Asked Questions


Family Law FAQs

Commercial Dispute Resolution FAQs

Debt Recovery FAQs

Disputed Guardianship and Wills FAQs

Family Law Articles

Commercial Litigation Articles


Ask a Question 1 Ask a Question1
Newsletter Sign-up Newsletter Sign-up
Contact Us Contact Us
Ask a Question Ask a Question
Newsletter Sign-up Newsletter Sign-up
Contact Us Contact Us

Need help with resolving or preventing a dispute?

Request a call with one of our experienced solicitors now!

* Required