Who can issue a statutory demand?

In short

A creditor owed a debt that is due and payable by a company can issue a statutory demand. The debt must generally exceed the statutory minimum ($4,000) and must not be genuinely disputed. Statutory demands apply to company debts, not personal debts, and are commonly issued through a solicitor to reduce the risk of defects.

Any creditor — an individual, a business, or a company — can issue a statutory demand, provided the debt and the debtor meet the statutory conditions.

Key conditions for the creditor

  • You are owed a debt that is due and payable now.
  • The debtor is a company (not an individual or partnership).
  • The debt exceeds the statutory minimum ($4,000).
  • The debt is not genuinely disputed and there is no offsetting claim.

Should you issue it yourself?

You are not required to use a lawyer, but statutory demands are frequently challenged on technical grounds. Having the demand prepared and reviewed by a lawyer reduces the risk of a defect that lets the debtor set it aside.

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

Ready to issue a statutory demand?

Lawyer-reviewed preparation and service for a flat fee of $999 inc. GST.

Start your demand

Related guides