If you or your Company have received a Statutory Demand, please contact us immediately to discuss all your options because there are now temporary measures t in place to assist Company’s who may have been impacted by the events of Covid-19.
Before Covid-19 under section 459E of the Corporations Act a Creditor could issue a Statutory Demand against a Company demanding payment of a debt of at least $2,000 (the Statutory Minimum) that was currently due and payable and the Company then had 21 days to pay the demanded amount, reach an agreement to the creditors satisfaction or apply to the courts to have set aside. If the Company failed to respond within 21 Days, the Company would then be deemed to be Insolvent and an application could be made to the Courts for the Company to be wound up in insolvency and a Court appointed Liquidator take charge.
In order to reduce the instances of Companies being liquidated the Federal Government then implemented the Coronavirus Economic Response Package Omnibus Act 2020 which put in place temporary measures including increasing the Statutory Minimum from $2,000 to $20,000 and extending the time to respond from 21 days to 6 months this ended on 31 December 2020.
On 1 January the Corporations Amendment ( Corporate Insolvency Reforms ) Act 2020 commenced and will run for a 3-month period till 31 March.
Under this temporary relief measure the restrictions on the issuing of Statutory Demands and relief from Insolvent trading liability would then apply to the Business for a period of 3 months until the Company was able to engage a Small Business restructuring practitioner or other insolvency practitioner.
In short if you have received a Statutory Demand call us now on 1300 803 290 for a free 30 Minute Consultation on how we can help because this extended period only begins when the directors have made a declaration about the company’s eligibility for temporary restructuring relief and Debt Solve Australia can help with this.