Setting aside statutory demands

If ignored, a statutory demand can be a death sentence for your company.

If you don’t pay the debt or apply to a court within 21 days, your company is presumed insolvent and may be liquidated. Act now! 

A creditor’s statutory demand for payment of a debt (Form 509H) is the corporate equivalent of a bankruptcy notice. It requires a company to pay a debt within 21 days or apply to a court to set the demand aside. A company that does neither will be presumed insolvent and the creditor will then be able to issue winding up proceedings.

Contact us now! 

(08) 9220 4402

ns@nullbirmanride.com.au

our services

How we can help you

At an assessment we will give you advice on your prospects of having the demand set aside. If the matter cannot be resolved by negotiation, we offer fixed price court representation.

Assessment

$350 +GST

If you dispute the debt or believe you have an offsetting claim against the creditor, we will review the situation and advise you of your chances of having the demand set aside.

We will provide you with a fixed price quote for a Negotiated settlement or Court hearing after we have considered the matter at an Assessment.

Negotiated settlement

We will:

  • prepare an affidavit explaining why the demand should be set aside; and
  • before incurring court fees, send a copy to your creditor and invite them to withdraw the demand.

If your affidavit raises a genuine dispute, a sensible creditor will withdraw the demand to avoid the risk of paying your legal costs.

Court hearing

If the matter is not resolved by negotiation, we will:

  • file your application and supporting affidavit at the Supreme Court of Western Australia;
  • attend one directions hearing;
  • prepare written legal submissions; and
  • prepare for and represent your company at the court’s hearing of your application.

 

If you succeed, the court will usually order the creditor to pay your legal fees assessed by reference to the court’s scale.

FAQs

A creditor’s statutory demand for payment of a debt (Form 509H) is the corporate equivalent of a bankruptcy notice. It requires a company to pay a debt within 21 days or apply to a court to set the demand aside. A company that does neither will be presumed insolvent and the creditor will then be able to issue winding up proceedings.

The liquidator is required to act in the interests of the creditors. He/she takes control of the company and its assets and manages its affairs without reference to the directors. He/she will sell the assets and may pursue any of the company’s claims against others – including its directors! The liquidator’s fees are payable from the company’s assets. The liquidator must lodge a report with ASIC as to the company’s affairs. Ultimately, the company will be deregistered.

No. If you successfully set aside the demand, it is open for the creditor to commence court proceedings against you in the usual way. In an application of this sort, the court is only looking at whether there is a genuine dispute or a genuinely asserted offsetting claim – it does not finally decide who is right.

You will usually be entitled to an order that the creditor pay your costs if you are successful in setting aside the demand. These costs are assessed in accordance with a legislative scale and are usually less than what you pay us.

No, the court rules require a company to be represented by a lawyer. Further, the law in this area is very technical and minor mistakes can be fatal to the application.

Immediately. If you don’t pay the debt within 21 days or apply to the court to set it aside, you cannot later challenge the demand.

The sooner you contact us, the more options we will be able to offer you. Whilst we will always do our best to help you, it takes time to prepare a court application. If you delay, we may not be able to assist you.

You may be able to challenge a demand if:

  • you dispute you owe the creditor the money;
  • the creditor owes you money (i.e. an offsetting claim);
  • if the demand is defective and that defect results in a substantial injustice (for example, the demand does not clearly state the amount you must pay); or
  • for some other reason (for example, the demand is an abuse of process).

You must file and serve your application on the creditor within 21 days of receiving the demand. It is not possible to extend this deadline.

Meet our team

We’re a tight-knit, multi-disciplinary team of lawyers, legal executives, accountants and software developers.  We’re also passionate community leaders, sportspeople, podcasters, musicians, parents… and proud that these interests inform our professional lives.

Senior Associate
Nigel is an experienced lawyer who leads the firm’s litigation and dispute resolution team. Having worked for Birman & Ride since 2011, he has experience in a wide variety of litigation matters including deceased estate litigation, family provision claims,……
Legal Executive
Angus joined the team in 2018 as part of the firm’s law cadetship program. He holds a Bachelor of Arts from UWA, majoring in Politics & International Relations and Business Law, and is currently studying the Juris Doctor at……
Legal Executive
Grace joined Birman & Ride in 2020 as part of the firm’s law cadetship program. Grace comes from a background of hospitality and retail work, where she gained valuable skills in customer service. At Birman & Ride, Grace works……
Lawyer
Sriram Srikrishnan (Sri) is a lawyer at Birman & Ride and works in the Wills and Estates and Litigation teams. Sri assists people to prepare Wills, applications for Probate and administer deceased estates. He also enjoys being creative with……

Why choose us

Our experienced lawyers provide great service at competitive prices.
01.
Benefit from our experience

We’re a law firm with more than 35 years’ experience in litigation and dispute resolution. From straightforward debt collection to Supreme Court trials, these are core services of our firm.

02.
Excellent value for money

We price our services fairly and transparently. We advertise fixed prices for standard services. Otherwise, we will analyse your requirements before issuing a written quote.

03.
100s of happy clients

Our goal is to anticipate your needs and exceed your expectations. We offer friendly and efficient service. Read what our clients say.

Testimonials

What our clients say

Hi Nigel, What a fantastic outcome. We weren’t expecting that – such an amazing turn-around! We are so grateful you took on our case and for the steps you put in place along the way. We really are on a high and can’t wipe the smile off our faces, a huge weight has been lifted off our shoulders. Please also extend our heartfelt thanks to Angus Edwards and the Birman & Ride family for helping us through a challenging time and getting our life back on track.
Mr and Mrs P
March 17, 2021
Dear Nigel, I just want to tell you how grateful I am to have had you in my corner, and to say I can’t thank you enough.
Ms B
March 17, 2021
I found your phone number on a website as I was searching for someone in W.A to talk with us. My mother and I spoke with Nigel over the phone. While we were disappointed in the outcome (though not surprised), we found that Nigel asked clarifying and probing questions to make sure he had a very good understanding of our situation. He explained things to us very clearly and precisely and gave us the opportunity to also to question, clarify and understand. Mum commented that she found Nigel easy to listen too and that she had a good understanding of his explanations. We were really very satisfied with the service that was given.
Rosemary Doherty
February 16, 2021
Very professional service and helpful manner by all staff I spoke with. The only delay was due to a somewhat pedantic government department! I will use the services again and will inform others should they ask for a recommendation.
Dr E
November 7, 2020
Thankyou so much for seeing me today Angus and Nigel . I found your service extremely caring , professional and sensitive . I especially appreciated your detailed family tree of origin …… being a nurse for over 40 years and to know what you are dealing with a detailed history is so important .  Thankyou once again for such a positive experience .
Ms T (Inheritance Dispute)
October 21, 2020
Dear Nigel, as the executor of [estate] I would like to thank you for your advice and handling of the probate process. It is rare, if at all, that we as individuals get to deal with the probate process and have to handle the often varying differences and demands of beneficiaries. It is for this reason we chose Birman & Ride and I thank you especially for your advice, experience, and patience in dealing with the other beneficiaries. Again, thank you for your services.
Ms K
October 12, 2020

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