You served a statutory demand on a company that owes you money. The 21-day compliance period has passed. Nothing has happened — no payment, no application to set aside, no contact. This silence is not a defeat. Under the Corporations Act 2001 (Cth), a debtor company that fails to comply with a statutory demand is presumed insolvent — and that presumption opens the door to the most powerful enforcement step available against a corporate debtor.
The legal mechanism
Section 459C of the Corporations Act 2001 provides that if a company fails to comply with a statutory demand within 21 days of service, it is presumed insolvent. Section 459P then allows you (as a creditor) to apply to the Federal Court of Australia or the Supreme Court of your state for a winding-up order. The presumption of insolvency is rebuttable, but the burden shifts squarely to the company. The application typically must be filed within three months of the demand expiring.
Common pushbacks and why they fail
- “We’ll pay next week.” Once the 21 days have lapsed, late payment doesn’t restore the company’s position — the presumption of insolvency is already enlivened.
- “We dispute the debt.” The time to dispute was within the 21-day window via a Form 519 application to set aside the demand. After that, dispute arguments are largely too late.
- “We didn’t receive the demand.” Service rules under section 109X are strict but well-defined; properly served demands are difficult to dodge.
- “Winding up is too extreme.” Courts grant winding-up orders routinely once the presumption is established and procedure has been followed.
What happens once you file
The court application is filed, served on the company and on ASIC, and gazetted. Other creditors may join. The hearing is typically listed within four to eight weeks. If the order is granted, a liquidator is appointed, the company’s assets are realised, and creditors are paid in priority order. The mere act of filing — and the public gazettal — often produces full payment within days, because directors and other creditors react fast to imminent liquidation.
What the document does
A Tribunal/Court Application package prepares the originating process for winding up under section 459P, the supporting affidavit verifying the demand and non-compliance, the consent of liquidator (often a standard appointment), and the schedule of supporting documents. It is the formal court document, not just a letter.
What Claim Done delivers
For a flat $79, Claim Done drafts a Tribunal Application package framed for winding-up applications under the Corporations Act, with the correct affidavit structure and supporting schedule. Compared to a commercial solicitor at $3,000–$8,000 to prepare the same filing, it is a fraction of the cost — and you retain control of the matter.
What happens after
The application is filed in the Federal Court or your state Supreme Court. A first return date is allocated. In a meaningful percentage of cases the company pays in full before the hearing to avoid liquidation. If not, the court makes the winding-up order and a liquidator takes carriage.