The Christmas Statutory Demand: How to Stop Insolvency Notices From Ruining Your Holidays

For creditors, serving a statutory demand just before the holiday shutdown can feel like checkmate. Offices close, deadlines keep running, and pressure mounts quickly on debtor companies.

But as this holiday special episode of Explain That by Velocity Legal explores, Christmas statutory demands can carry real risks for creditors too.

Hosted by Andrew Henshaw, and joined by Seamus Ryan and Sasha Kenny, this episode unpacks why this time of year is particularly dangerous for both sides. The Victorian Supreme Court decision in Three Pillars Lynbrook Pty Ltd [2022] VSC 540 is a timely reminder that statutory demands are a powerful tool, but one that must be used carefully. If a demand is defective, disputed or strategically misjudged, it can backfire and leave creditors exposed on costs.

In this episode, we cover
• Why statutory demands are often served over Christmas
• Why the twenty one day deadline does not pause for the holidays
• When a Christmas statutory demand can unravel for creditors
• What both creditors and companies should be thinking about before December

Whether you are considering issuing a statutory demand or worried about receiving one while the office is closed, this episode is a timely reminder that insolvency law does not take a holiday.

For tailored advice on statutory demands, insolvency risk and dispute strategy, contact our Disputes and Insolvency Team at www.velocitylegal.com.au.

🎧 Listen to the holiday special below: