Information about a Creditor’s Statutory Demand

What is a creditor’s statutory demand?

A creditor’s statutory demand is a document sent under the Corporations Act 2001 (Cth) which demands payment from a company of a debt. If the company does not pay within 21 days of service of the statutory demand, the Company is presumed by a court to be insolvent and can be wound up.

How do I send a Creditor’s statutory demand?

They are composed according to the set format dictacted by the Corporations Regulations 2001 (Cth) which say exactly how they are to be laid out. They are then served on the registered office of the company. Normally it would be mailed to them via registered post and you would certainly make copies of all of the documents which you are sending and keep a receipt for the registered post so that you can prove that you have served the document.

What do I need to do if they do not respond to a Creditor’s Statutory Demand?

There are a few additional documents you will need and you should definitely seek a lawyer at this stage for advice about the situation. You will need as a minimum the following documents to initiate an application for Winding Up.  Also, keep in mind that sending a creditor’s statutory demand is only the first step in recoverying your debts against a company.  There are many other steps you will need to take before you can purse this to its final conclustion which is the windig up of the company.  However, the issuing of a statutory demand has a very high rate of effectiveness in debt recovery because it raises the stakes of the non-payment gamble to a whole new level.   But to be brief, as a minimum you the documents required for a winding up application, the first document you will need is a creditor’s statutory demand. You should be aware before buying this product that you need the assistance of a legal professional to complete it and to send it you need to either have a valid judgment debt or fill out an affidavit which verifies the debt and is signed by a lawyer. If this document is used properly, however, it is a very powerful tool.

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1. Creditor’s Statutory Demand – You can Buy a Creditor’s Statutory Demand Template from this website.
2. Advertisement in local widely distributed newspaper of application to wind up.
3. Affidavit in Support of application to Wind Up.
4. Affidavit of Service of Staturtory Demand.
5. Consent of Liquidator
6. Calculation of your legal costs.

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