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Creditor’s Statutory Demand - When to stick your head in the sand (and when not to)

Creditor’s Statutory Demand - When to stick your head in the sand (and when not to)

Posted on
Thu, 11/15/2018 - 08:47
Posted by SylviaHoefnagels

By Sylvia Hoefnagels



If you have a company, chances are that sometime throughout the life of your business, you will receive (or issue) a creditor’s statutory demand.


It may be enticing to ignore any demand received, especially if it seems without any basis, but you should not ignore a creditor’s statutory demand: there are very strict deadlines (in general, 21 days from the date you received it) and your company could be placed in liquidation if appropriate steps are not taken within that time.


Similarly, if you issue a creditors statutory demand on a company – and then ignore any submissions made in response to that demand, you may find yourself on the other end of a court hearing and be ordered to pay costs on the indemnity basis. An example involving Robbins Watson is Corio Homes Pty Ltd and Sailor Venus Pty Ltd where a costs order on the indemnity basis was made in our client’s favour.


If you are not sure whether a demand can be ignored, or whether you can use a creditor’s statutory demand, contact us for an initial consultation. 


Should you wish to download a copy of this article click HERE.


  1. The information on this blogpost is of a general nature, not intended to be specific professional advice.
  2. Please seek the opinion of a professional to advise you of your situation.
  3. The author’s opinions are his/her own and do not represent the views of any other person, firm or entity.
  4. The author is not responsible for the accuracy or appropriateness of third-party comments or articles, including those of guest authors and editorial contributions.
Any comments, letters, and other submissions are moderated and may be edited or withheld at the sole discretion of the author.

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