Join our mailing list to stay informed!
Posted by Revive Financial on Jul 13, 2018 12:00:00 AM

One way creditors can recover money from a company is with a Statutory Demand. This demand, made under the Corporations Act 2001 gives the company's director 21 days from the day it's received to pay a specified sum of money.

If you receive a Statutory Demand, you have 21 days to either pay the debt in full or dispute the debt and apply to have the Statutory Demand set aside. But you need to act quickly. If you don't act within 21 days, your creditors can use your failure to comply as proof your company is insolvent. They can then file an application with the court to appoint a liquidator and wind it up.

Here at Revive, we talk to a lot of company directors who have had winding up applications made against them and in a lot of cases it happened simply because they didn't act within the 21 day time frame. Unfortunately, once the application is made, your options for dealing with the debt, other than paying it in full, are significantly reduced.

For example, instead of being able to appoint your own liquidator, you have to settle for whoever the creditors choose to wind up the company. And while you can appoint a voluntary administrator to try to save your company and restructure its affairs, the fact its insolvent makes the process more expensive.

So if you receive a Statutory Demand, avoid receiving a wind-up notice by talking to Revive as soon as possible. With our professional advice, you will have the widest range of options for dealing with your companies debt and minimise the risk of it being deemed insolvent.

Contact Revive Financial today to arrange a free and confidential consultation, or see how we can help with our Instant Online Assessment.

For more information on Company Liquidation, check out our Company Liquidation page here.


Topics: Company Liquidation, Tax Debt, Business Debt, reduce business debt

How Can We Assist You Today?

Personal Debt Icon Personal
Business Debt Icon Business
Please select an assistance option to continue.

Types Of Unsecured Debts

Credit Card Icon Credit/Store Cards
Personal Loan Icon Personal Loan
Pay Day Loan Icon Pay Day Loan
Tax Debt Icon Tax Debt
Disconnected Utilities Icon Utility Bill
Other Debts Icon Other
Please select at least one type of unsecured debt.

Your Business Structure

Sole Trader Icon Sole Trader
Partnership Icon Partnership
Company Icon Pty Ltd Company
Tax Debt Icon Trust
Please select at business structure to continue.

Unsecured Debt Amount


Business Debt Amount


Take Back Control Today!

First Name

Last Name


Phone Number

Phone number must be 10-digits long and begin with a 0. (e.g. 04 1234 5678)

Post Code

Post code must be 4-digits long (e.g. 4567)

Some of your details appear incorrect.
Please update the highlighted fields and re-submit.


You’ve taken the first step to steer your business back to viability

Let’s keep the momentum going, take the second step by linking your Xero account now.


You've taken the first step to becoming debt free

Let's keep the momentum going, take the second step now and complete the assessment form.

By submitting this form you acknowledge that you have read and accept our Privacy Policy