This is one of the more common documents we get instructed to serve personally on an individual. There is a separate process for serving Statutory Demands on companies.
A Statutory Demand is a document that requests that the person being served (‘the Debtor’) pays a debt, or comes to an arrangement about repayment, then the person serving the Demand (‘the Creditor’) can start proceedings to make the Debtor bankrupt.
The Debtor usually has 21 days to contact the Creditor and make payment or come to an arrangement with the Creditor. If the Debtor does not pay the debt, or make an arrangement with the Creditor, then the Creditor can start bankruptcy proceedings by filing a bankruptcy petition with the Court.
The Creditor will not be successful with a bankruptcy application if there is no evidence that the Statutory Demand has been correctly served upon the Debtor.