Should I Respond to a Statutory Demand?

 

Most certainly.  When a statutory demand, also known as a Section 289 Notice,  is served on company, it has 10  working  days  to  dispute  the  debt  by  filing  an  application  to  set  aside  the demand,  or  15  working  days  to  pay  the  debt. 

 

If the  debt  is neither disputed nor paid, then on the expiration of the 15 working days, the debtor company  is  deemed  to  be  insolvent  and  the  creditor  can  apply  to  the  Court  to place the debtor company into liquidation.  The onus is then on the debtor to satisfy  the  Court  that  it  is  solvent.  This will involve Court representation and the attendant legal fees.