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Setting aside statutory demands

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.

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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

$440 inc 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.

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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.

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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.

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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 team of lawyers, legal executives, accountants, and software developers — with a few extra strings to our bow. You’ll also find us leading community projects, playing sports, hosting podcasts, making music, and raising families. We’re proud to bring all of who we are into the work we do.

Nigel Siegwart
Legal Practitioner Director
Nigel leads the firm’s litigation and dispute resolution team and has experience in a wide variety of litigation matters including deceased estate litigation, family provision claims, contractual and construction disputes, trust and property matters. Nigel has an instinctive ability……
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Angus Edwards
Associate
Angus joined the team in 2018 as part of the firm’s law cadetship program while studying his juris doctor. He subsequently graduated from UWA with a juris doctor in 2021 and was admitted as a lawyer in April 2022…….
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Bea Belonio
Lawyer
Bea joined Curae Law in 2023 as part of the firm’s law cadetship program. Having previously spent time in commercial law, family law, and at community legal centres, she is equipped with a diverse skill set, enabling her to……
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Sophia Sunthang
Lawyer
Sophia was admitted as a lawyer in December 2024. She works in our litigation team, assisting with client matters, drafting court documents and conducting legal research to support the firm’s cases. Sophia’s approach to legal work is collaborative, attentive,……
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Georgette Kruger
Paralegal
Georgette provides comprehensive legal paralegal support to our litigation team. Georgette’s meticulous coordination extends to managing appointments, handling bookings, and ensuring timely follow-up tasks. She is an integral part of our team, attending client meetings to take detailed notes……
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Josette Brennan
Paralegal
Josette works as a Paralegal in our Debt Collection team. With a perfectionist mindset and a natural aptitude for organisation, Josette brings a methodical and independent approach to her role, backed by her strong academic foundation in law. Josette……
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Why choose Curae Law?

Clear, compassionate and strategic support when you need it most.

01.

We simplify legal processes

We’ll guide you step by step with practical advice and clear communication, so you always know what to expect. Read what our clients say.

02.

We lighten the load

From paperwork to court proceedings, we handle the details so you can focus on what matters most — your wellbeing and peace of mind.

03.

We're trusted experts

With hundreds of disputes resolved — big and small — we bring deep experience, legal know-how, and genuine care to every client we support.

Testimonials

What our clients say

Good afternoon Nigel,  I would like to thank you most sincerely for your help and guidance with the handling of the Estate of my late [relative]
Mrs S – Contested Estate Dispute
August 22, 2025
Once again really efficient, personable and professional assistance from Nigel Siegwart. The fees are very reasonable and the admin payment system worked seamlessly for me, and there was a friendly person at the end of the line to reassure payment details. Highly recommend this firm, it’s my second time using them and both times very happy !! Thankyou for making things easy.
Ms G
August 18, 2025
Debt collection system definitely works!
Get Paid Debt Collection Client
August 5, 2025
My initial hour session with Nigel and Sophia was very easy and down to earth. Nigel already had an idea of the situation having read through some details I had previously sent through before the meeting. He was very generous with his ability to listen and absorb the situation and suggest a way forward. It was a positive and natural process to continue with his help and I feel a great weight has lifted knowing Nigel and Sophia are working for our best outcome. Also the atmosphere of the building and conference room was very peaceful nothing too pretentious or audacious. I enjoyed and felt at ease with the whole process. Professional and understanding.
Ms C - Dispute estate client
July 24, 2025
I have been using this company for debt collection for quite a number of years and have always found them to be very efficient, professional and the website very easy to use. Nigel, Angus and Bea are lovely to speak with and I have received 100% of all debtors payments to date. I would not hesitate to recommend Curae law Debt Collecting. Very nice team.
Ms D - Get Paid Debt Collection Client
July 23, 2025
To both [Nigel and Sophia] – thank you for your support. Much appreciated.
Ms S – Disputed Estate Client
July 14, 2025

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