How long do I have to respond to a statutory demand?

21 days
You have 21 days to respond to a statutory demand. To respond, you must do one of the following: pay the debt. reach an agreement with the creditor to pay the debt in the future, for example by using a Company Voluntary Arrangement.

How long do you have to set a statutory demand aside?

The statutory demand requires the debtor to do one of the following: Apply to set the statutory demand aside. The debtor company has strictly 21 days to do the above.

Is there a maximum amount that can be demanded in a statutory demand?

What is the Statutory Demand Limit? The statutory demand limit is $2,000.00. This is a minimum threshold, there is no maximum amount that can be claimed in a statutory demand. Section 9 of the Corporations Act defines a statutory minimum as: “statutory minimum” means: (a) if an amount greater than $2,000 is prescribed – the prescribed …

Can a 6 year old make a statutory demand?

If the debt’s over 6 years old, you cannot usually make a statutory demand. You can get legal advice instead. There may be faster ways of getting smaller debts paid than making a statutory demand. You can apply to bankrupt your debtor or close (‘wind up’) their company if they do not respond to the statutory demand within 21 days.

Is the 21 days specified in s 459g a statutory demand?

This was recognised by Brown J at [9] who stated that: The fact that the 21 days specified in s 459G may include a period of public holidays which may lead to some parties having shorter time to respond and harsh results given the Court has not got the power to extend the time prescribed, has been recognised by the courts.

When to respond to a time limit demand?

One of the first things to determine is the demand’s response deadline. This may seem like a straight-forward proposition; however, sometimes it is not clear when the response is actually due. For instance, the demand letter may say that “tender of the policy limits is due within 20 days.”

When to make a statutory demand for payment?

Statutory demand. A formal written demand for payment of a debt within 21 days. If the debtor does not pay within the 21 days and either fails to apply to have it set aside (where the debtor is an individual), or fails to apply to restrain the creditor from presenting a winding-up petition (where the debtor is a company),

Can a statutory demand be used to support a petition?

A statutory demand can be used to support such petitions because non-payment of a statutory demand within 21 days may be deemed evidence of the debtor’s inability to pay his (or her or its) debts.

When to use ” due within 20 days ” in a demand letter?

For instance, the demand letter may say that “tender of the policy limits is due within 20 days.” The phrase “due within 20 days” creates an ambiguity because it is unclear if the response is due 20 days from the date of the letter or 20 days from the date of receipt of the letter. Carriers should never assume the latter.