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Legal guide · Victoria

What is a statutory demand and how do I respond?

A statutory demand is a serious debt notice to a company — ignore it and your company can be presumed insolvent. You have just 21 days, so act immediately.

Business & commercial

A statutory demand is a formal notice requiring a company to pay a debt (generally above a set threshold). It’s serious: if you don’t respond within the deadline, your company can be presumed insolvent, opening the door to winding-up.

The strict 21-day deadline

You have 21 days to either pay, reach agreement, or apply to court to set the demand aside. This deadline is strict and generally cannot be extended — so act immediately.

Setting it aside

You may be able to set a demand aside if there’s a genuine dispute about the debt, an offsetting claim, or a defect in the demand. That requires a court application within the 21 days.

How we help

We assess your options urgently and, where appropriate, apply to set the demand aside in time. Book a consult the day you’re served.

Common questions

Good to know

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

Just 21 days — to pay, reach agreement, or apply to court to set it aside. The deadline is strict and generally can’t be extended.

Can I challenge a statutory demand?

Possibly — if there’s a genuine dispute, an offsetting claim, or a defect. It requires a court application within the 21 days, so act immediately.

General information only — for advice about your situation, see more guides or book a consult with ORLA Legal.

Company served with a demand? Act within 21 days.

Speak with an experienced Victorian lawyer — book online, or call us 24/7.

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