From Demand to Dispute: Handling Defences in Statutory Demands

A statutory demand is a powerful tool to recover debts quickly, especially when dealing with a company. But it’s also a tool that debtors can try to sidestep by filing an application to set aside the statutory demand. Some common reasons debtors give include:

• Genuine dispute: This is the most frequently used defence. The debtor claims that the debt is not clear-cut. The threshold for proving a “genuine dispute” is relatively low — enough to raise a real, not fanciful, argument.
• Offsetting claim: Here, the debtor argues they’re owed money from you, reducing or negating the debt. The court will then be required to assess whether the offsetting claim is genuine and quantifiable.
• Defect in the demand: Technical errors, such as incorrect names, amounts, or formatting, could be raised.
• Amount in question is incorrect: If the amount is inflated or includes disputed fees or penalties, or costs of recovery without entitlement, this might be a legitimate ground for challenge.

On the surface, these may seem like legitimate reasons. However, they can also be used by a debtor as delay tactics, for the debtor to buy more time or avoid payment altogether.

Responding Incorrectly Can Damage Your Case

It’s tempting to see the defence as a minor roadblock; however, ignoring it or handling it poorly can cause serious delays or even undermine your claim.

Once a statutory demand is challenged, time is of the essence. You must act quickly and decisively, ensuring that:

• Your supporting evidence is clear and persuasive
• You don’t concede to weak or unfounded claims
• You respond within the required timeframe

Failing to handle the dispute correctly can result in the demand being set aside and potentially losing your leverage in collecting the debt.

How We Handle Statutory Demand Disputes

At Click and Collect Debt, we specialise in handling statutory demand disputes with precision. We know the tactics debtors use to challenge a statutory demand, and we know how to counter them effectively.

When you work with us, we:

• Evaluate the debtor’s defence and identify any weaknesses
• Prepare strong evidence to support the validity of your demand
• Represent you in court to contest the set-aside application, if needed
• Work to resolve the matter efficiently—minimising time, cost, and stress

End of the road

Receiving a defence to your statutory demand isn’t the end of the road, it’s just a new phase in the recovery process. With the right legal strategy, you can overcome objections, enforce your rights, and move forward with confidence.

Don’t leave your debt recovery efforts to chance, contact our experienced lawyers today.