A statutory demand is considered as the first step to bankruptcy. It is favoured by the creditor for urging you to fulfill your debt obligation. It is served without any court involvement and a judgement isn't necessary; it can be served as soon as the debt is due. A statutory demand ultimately gives you 21 days warning to pay the debt. If you don't respond or pay the debt within the 21 days, the creditor can follow up with a bankruptcy petition.
If you (the debtor) dispute the Statutory demand you have 18 days to apply for it to be set aside (dismissed). Then, if the creditor decideds to proceed with bankruptcy due to non payment of the debt, the court will halt the bankruptcy.
in order to get a statutory demand set aside you must satisfy one of the following criteria:
If you receive a statutory demand, do not dispute the debt you could:
If you have received a statutory demand, we can help. Contact us right away and we will provide you with the best debt advice for your situation.