28/08/2026
If a statutory demand arrives at your company, the worst thing you can do is set it aside for a fortnight.
You have 21 days from service. That is the whole window.
Inside it, you either pay, negotiate a resolution, or apply to the court to have the demand set aside. A court can set one aside where there is a genuine dispute about the debt, an offsetting claim, a defect in the demand that would cause injustice, or another good reason. The bar for showing a genuine dispute is not especially high. It has to have substance and be raised in good faith.
Miss the 21 days and the options narrow sharply, because the Act then presumes the company is insolvent.
Worth knowing that most creditors would rather take a payment plan than run winding up proceedings. That conversation is usually available. It is only available while the clock is still running.
Call us on 03 9052 3214 or visit: https://www.tnslawyers.com.au/how-to-recover-debts-using-a-statutory-demand/
The content on TNS Lawyers' social media page is intended to provide general information. It is not legal advice and should not be regarded as legal advice.