The creditor promised to withdraw the demand.

A reassuring phone call has not closed the formal issue

A supplier’s credit manager tells a company director that a statutory demand will be withdrawn after an invoice error is discovered. The director cancels the lawyer’s appointment. Two days later, the supplier’s solicitor has not confirmed anything and the original demand remains in the company’s file. The promise needs to be checked before the company relies on it.

Identify exactly what was promised

Record who spoke, when, their role and the words used. Preserve emails and notes. Distinguish a promise to investigate, a recommendation to withdraw and an authorised confirmation of withdrawal.

Make sure both sides are referring to the same demand, company and debt. A general statement that the account is being fixed may not address the formal notice.

Request clear written confirmation

Ask the creditor or its lawyer to identify the demand and confirm the action taken. Send the response to your own lawyer for assessment rather than interpreting ambiguous wording yourself.

Check whether the withdrawal is unconditional or tied to payment, documents or another event. If conditions exist, establish who must do what and whether they have actually been satisfied.

Keep the response timetable protected

The Federal Court explains the strict nature of statutory-demand procedure. Continue obtaining advice and preparing any necessary response until the adviser confirms the position is resolved.

Do not assume that friendly negotiations or an informal undertaking provide extra time. If confirmation is delayed, ask the lawyer what protective action is required.

Source: Federal Court — Winding up proceedings based on an unsatisfied statutory demand

Close the account issue separately

Reconcile the underlying invoices and any remaining dispute, even if the demand is withdrawn. Retain the withdrawal confirmation with the corrected statement and payment records.

Explain the actual result to accounts and management. Withdrawal of a demand should not be described internally as forgiveness of every debt unless that is what the documented agreement provides.

Verify withdrawal before standing down

Record the precise promise and the speaker’s authority.

Obtain written confirmation tied to the actual demand.

Keep legal response work active until the position is verified.

Call CRP today to coordinate support when a promised withdrawal has not yet been confirmed.