A statutory demand refers to a judgment you were already disputing

The demand follows an earlier court case

Imagine a company receives a statutory demand referring to a judgment debt. The director remembers disputing the original invoice and assumes the same objection can simply be emailed again. Take the demand and the court history to a lawyer immediately. The existence and current status of a judgment are important facts that cannot be replaced by the original commercial disagreement.

Identify the basis of the demand

The Federal Court's statutory-demand guide distinguishes judgment debts when describing supporting-document requirements. Ask your lawyer how the actual judgment affects this demand and the available response. Do not infer invalidity because the papers differ from a demand seen in another matter. The statutory process requires prompt, case-specific advice while the underlying court position is checked.

Source: Federal Court: Statutory demands and winding-up proceedings

Obtain the relevant orders and documents

Provide the judgment, original claim, any defence or application, subsequent orders and correspondence with prior lawyers. Record the court and case number. In the hypothetical example, the director may have instructed someone to consider a challenge without an application ever being made. Distinguish instructions, filings and outcomes so the new adviser can see what actually happened.

Keep current status separate from intention

Ask for confirmation of any pending application, stay or order and supply the evidence. A statement that the company plans to challenge a judgment is not the same as a verified court step or result. Do not assume one process has paused the other. Let the lawyer assess the interaction and identify what immediate action is required.

Preserve payments and subsequent events

Include receipts, account updates and agreements made after judgment, with dates and supporting records. Avoid deducting an amount from the demand based solely on an unaccepted settlement proposal. Explain any uncertainty about allocation or costs. The adviser needs the current factual position as well as the original judgment to assess the company's response properly.

Coordinate responsibility for both matters

Confirm which lawyer is handling the demand and how they will obtain information from anyone involved in the earlier case. Keep the service records and urgent timetable visible. CRP can help organise commercial records, but the linked court and statutory-demand questions need qualified legal advice. The useful next step is a joined-up file, not a repeated objection detached from the judgment history.