Form 509H and the supporting affidavit
In short
A creditor's statutory demand is made using the prescribed form (Form 509H). Where the debt is not based on a court judgment, it must be accompanied by a supporting affidavit verifying that the debt is due and payable. Defects in the form or affidavit are a common reason demands are successfully challenged.
A statutory demand has a prescribed form and, in most cases, must be supported by an affidavit. Getting both right is essential — technical defects are one of the most common grounds for setting a demand aside.
The prescribed form (Form 509H)
A creditor's statutory demand is issued using Form 509H. It must accurately state the amount of the debt and comply with the requirements of the Act and Regulations.
The supporting affidavit
Where the debt is not based on a judgment, the demand must be accompanied by an affidavit that verifies the debt is due and payable and complies with the prescribed requirements. A judgment debt generally does not require a supporting affidavit.
Do not use a statutory demand for a genuinely disputed debt. If the debtor disputes the debt on genuine grounds, or has an offsetting claim, a statutory demand can be set aside and cost orders may follow. If in doubt, seek advice before proceeding.
References
- Corporations Act 2001 (Cth) — incl. s 459E (statutory demand)
- Corporations Regulations 2001 — prescribed form and statutory minimum
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