Statutory Demand Services in NZ

We Help Both Creditors and Debtors With Statutory Demands

Whether you’re a business owner trying to recover overdue payments or someone facing a claim that could impact your future, a statutory demand can be an unexpected and daunting event.

Our insolvency firm specialises in statutory demand services, providing a straightforward approach to resolve debts for businesses and creditors across New Zealand.

Whether you are owned money or you have received a statutory demand, we can help.

What You Need to Know about Statutory Demands

A statutory demand is a type of formal demand, specifically a legal notice issued by a creditor to a company to request repayment of a debt that is $1,000 or more.

In New Zealand, statutory demands are commonly used as the first step toward more serious actions, such as winding-up petitions for companies or bankruptcy proceedings for individuals, should the debt go unresolved.

At InSolve, we simplify the complexities of statutory demands, helping you manage the process effectively and without unnecessary stress.

Our approach prioritises clear, strategic guidance so you can move forward with confidence.

When to Use a Statutory Demand

For creditors, statutory demands can be a cost-effective, efficient way to recover unpaid debts when a company owes a debt, bypassing lengthy court proceedings.

A statutory demand can motivate a debtor to pay promptly, as failing to comply may lead to liquidation. Key benefits include:

  • Legal Leverage: The risk of liquidation often compels payment, avoiding lengthy court proceedings.
  • Quick Resolution: Statutory demands can achieve faster results than traditional debt recovery methods.
  • Cost-Effectiveness: This approach is generally less costly than pursuing other debt enforcement actions.

How We Help with Statutory Demands

Insolve Partners is here to help you navigate the process from start to finish. We offer clear, actionable guidance that safeguards your assets and protects your professional relationships, ensuring you understand your options every step of the way.

For Creditors: Collecting Outstanding Debts and Liquidation Proceedings

If you’re a creditor seeking debt recovery, serving a statutory demand can be an effective step. Our team will:

  • Assess the best option: We’ll help determine if a statutory demand is the best option for recovering your debt.
  • Prepare & Serve: Our experts ensure the statutory demand is accurately prepared, legally compliant, and served correctly, reducing the risk of disputes. The statutory demand must be served to the company’s registered office to ensure legal compliance.
  • Next Steps: If the debtor fails to respond, we’ll guide you through potential next steps, including liquidation proceedings, to protect your financial interests.

For Debtor Companies: Responding to a Statutory Demand

Receiving a statutory demand can be stressful, especially if there are disputes over the debt. Our team can assist you in:

  • Evaluating Your Position: We help you assess the demand, verifying whether the debt is valid and exploring options for resolution. If a debtor company fails to respond to a statutory demand, it may lead to the presumption of insolvency and potential liquidation.
  • Dispute Resolution: If you believe the debt is not owed, we can work to set aside the statutory demand, protecting your assets and reputation.
  • Strategic Guidance: We aim to preserve your commercial relationships and ensure your response aligns with New Zealand’s legal requirements.

The Statutory Demand Process

With InSolve, every step of the statutory demand process is handled with expertise, making sure that your case is compliant with New Zealand’s legal requirements. Here’s a simplified look at how we manage the process:

1. Initial Assessment

We start by reviewing your case in detail, determining whether a statutory demand is the right option for creditors by verifying the debt owed, or, for debtors, assessing the demand’s validity and implications.

2. Documentation and Compliance

Our team ensures all required documentation is prepared accurately, whether for serving a demand or applying to have one set aside. We also arrange for compliant service methods, such as personal service or postal delivery.

3. Legal Actions and Representation

For disputed demands, we handle all necessary court applications, including representing you in applications to set aside or further pursuing liquidation proceedings. A debtor may present a cross-demand if there are disputes regarding the owed amount.

4. Resolution

Throughout the process, our priority is achieving a resolution that upholds your rights and interests—whether recovering a debt or managing a claim against you.

Why Choose InSolve for Statutory Demand Support?

New Zealand is a small, connected community, and reputational impacts from insolvency matters can be long-lasting. Insolve’s dedicated team prioritises strategic, effective, and discreet solutions to resolve your financial matters. We pride ourselves on our:

  • Expert Knowledge: As RITANZ-certified practitioners, we offer the highest standards of insolvency and debt recovery expertise.
  • Clear Communication: We believe in transparency at every stage, providing you with timely updates and straightforward explanations.
  • Proactive Problem Solving: Our team is committed to finding efficient solutions that minimise impact and maintain commercial relationships wherever possible.

Whether you’re seeking to enforce a statutory demand or need help responding to one, our team is here to make the process manageable and stress-free.

Meet the Statutory Demand Experts

Sam Yates

Ryan Eathorne

Meet the Statutory Demand Experts

Sam Yates & Ryan Eathorne

Some of Our Results

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FAQ About Statutory Demands

A statutory demand is a type of legal demand, specifically a legal request for debt payment within 21 days, commonly used as the first step toward further legal action if a debt remains unpaid.

Statutory demands are appropriate when the debt is undisputed, and the amount exceeds the minimum threshold, making it a viable option for swift debt recovery. However, a statutory demand should not be served if there is a substantial dispute over the debt.

Serving a statutory demand involves following strict legal guidelines to ensure the demand is valid. Our team can manage this process for you, ensuring that your demand meets all requirements and reduces the risk of disputes.

In New Zealand, a statutory demand is typically deemed served with a statutory demand when it’s delivered to the debtor’s registered address. However, confirming service can be complex, and we help ensure all steps are properly documented.

If you receive a statutory demand, it’s crucial to act promptly. You have 15 working days to pay, dispute, or apply to have it set aside. Consulting an insolvency lawyer can help you understand your options and respond effectively to avoid potential liquidation.

Debtors have 18 days from the time of service to apply to the High Court to set aside a statutory demand if they believe there’s a valid dispute.

A statutory demand can be issued to obtain payment for an undisputed debt that exceeds the minimum threshold, typically as a means to recover outstanding debt. We can advise if this is the right approach for your circumstances.

No, in New Zealand, a statutory demand does not have to be personally served. It can be sent to the registered office of the debtor company or delivered by other means specified in the Companies Act 1993. However, ensuring proper delivery is essential to avoid disputes over service.

Serving a statutory demand carries some risks if the debt is disputed or if the demand isn’t properly served. Improper service or disputed debts can lead to complications in the liquidation process.

No, a statutory demand should not be issued if there is a genuine dispute regarding the debt. For disputed debts, other legal avenues are typically more appropriate. Insolve can help determine the right approach based on the specifics of your case.

Ignoring a statutory demand can have serious consequences. This may result in further legal actions such as a winding-up petition for companies or bankruptcy proceedings for individuals. Our team can guide you through these next steps if required.

Yes, negotiating a payment arrangement is often possible. Our team can help facilitate negotiations, until both parties reach an arrangement to pay the debt that meets legal standards and preserves business relationships.

Speak to Us Now!

Facing a statutory demand issue?

Time is of the essence.

If you have received a statutory demand, you only have 15 working days to either dispute it or pay it.

Get in touch with Insolve’s expert team to understand your options and receive the support you need to handle your statutory demand case effectively.